A US Government Accountability Office (GAO) released today
the preliminary observations on the U.S. Army’s implementation
of its equipment reset strategies. According to the preliminary
report, due to reporting and tracking inadequacy, the Army is
unable to confirm that the $38 billion that Congress has appropriated
since fiscal year 2002 for equipment reset has actually been
obligated and expended for this purpose. Lacking sufficient
monitoring of actual reset spending, the report forewarns the
Army cannot be assured its reset strategies will sustain equipment
availability for deployed as well as non-deployed units while
meeting ongoing operational requirements.
USAF, Navy Order
Precision, Standoff Guided Weapons
The US Air Force awarded Lockheed Martin Missiles and Fire
Control $294 million for continued production of AGM-158A lot
six and seven of the Joint Air-to-Surface
Standoff Missile (JASSM). This award sustains production
through March 2008. The US Navy awarded Raytheon about $101
million for a third full rate production order of 376 AGM-154C
Unitary Joint Stand-Off Weapon
(JSOW-C). Production will continue through February 2009.
A third $92 million contract was awarded by the USAF to Textron
Systems Corp. for the delivery 291 Sensor Fuzed Weapons (SFW).
The Russian Press indicated on January 30, 2007 that Venezuela
is also interesting in aquiring Tor M1 systems at an estimated
cost of US$290 million. Venezuela plans to have the new systems
interoperable with new radars and fighter jets recently bought
from China and Russia.
General
Dynamics Land Systems-Canada is teaming with BAE Systems Ground
Systems Division, to offer vehicles to the MRAP
program. The team is offering the RG- 31 Mk5, the latest
version of the highly successful RG-31
vehicle family. GDLS Canada will provide the program management
and logistic support while South African based BAE Systems Land
Systems OMC will manufacture the vehicles in BAE Systems' facilities
in York, Pennsylvania.
The U.S. Air Force released yesterday (Jan. 30, 2007) the
Request for Proposal for the KC-X Aerial Refueling Aircraft,
officially launching the Air Force's highest priority acquisition
program in recent years. Two candidates are competing for the
$30-40 billion KC-X program - Boeing (NYSE: BA), offering the
KC-767 (or a derivative of the larger 777) and Northrop Grumman
(NYSE: NOC)/ EADS offering a militarized version of the Airbus
A330 designated KC-30. While the KC-30 is assumed to be more
expensive than the KC-767, price will not be the only factor
in selection as operational advantages could outweigh cost difference.
The U.S. Air Force has selected BAE Systems and SRA International
(NYSE: SRX) to develop the second spiral of the Flexible Access
Secure Transfer (FAST) waveform into the Multifunction Information
Distribution System Low Volume Terminal 1 (MIDS LVT1). The $7
million contract will enable the MIDS LVT1 to simultaneously
transmit and receive both standard Link 16 and FAST waveform
messages. FAST will provide a cost-effective solution enabling
all U.S. and coalition forces to exchange multimedia communications
including data, voice, and video over the MIDS terminals, in
real-time.
Ceradyne Awarded
Additional order for ESAPI Body Armor
Ceradyne, Inc. (NASDAQ: CRDN) received a $113 million delivery
order for ESAPI (Enhanced Small
Arms Protective Inserts) from the U.S. Army, Aberdeen Proving
Ground, Maryland. Delivery is scheduled for six months starting
April 2007.
General
Dynamics Land Systems-Canada is teaming with BAE Systems Ground
Systems Division, to offer vehicles to the