Italian Rys: Russia Buys Western Lynx MRAPs

Linces in Afghanistan

In a strong-commodity, weak-dollar/Euro world, Russia has the finances it need to replenish its badly depleted military. What it doesn’t have yet is the industrial and engineering capacity, which was lost during the state’s budgetary collapse. The Russians have been paying close attention to global trends, as evidenced by their interest in amphibious assault ships. It’s certainly hard to ignore the big global shift toward blast-resistant vehicles, especially in a state already plagued by various insurgencies within and near its borders.

In 2010, media reports began to surface that Russia was negotiating with Italy’s Iveco, with the aim of buying and license manufacturing the firm’s LMV/MLV/Lince blast resistant vehicles. Russia has little experience in this area, but rather than go with a partnership involving South African players, they targeted the higher-cost end of the global MRAP (Mine Resistant, Ambush Protected wheeled vehicle) market. Iveco’s M65 Lince has received praise for its performance in Afghanistan, while receiving orders from Italy, Austria, Belgium, Britain, Croatia, the Czech Republic, Norway, Slovakia, and Spain. At over 350 ordered vehicles, Russia’s “Rys” fleet is already one of the firm’s largest contracts – with the potential to become Iveco’s largest customer by far.

Rapid Fire Nov. 1, 2012: Shipbuilding Capabilities

• China has ramped up mass production techniques and coordination between its shipyards to allow a rapid modernization of its fleet, with some degree of versatility thanks to modular construction. The Diplomat.

• Meanwhile the Commander-in-Chief of Russia’s Navy Admiral Viktor Chirkov is expecting his country’s shipyards to launch 5 combat and support ships per year in years to come. RIA Novosti.

• The Philippines’ plan to buy a 3rd used cutter from the US is on hold, according to the Philippine Star. For now they will focus on equipping the two ships they already acquired from the US Coast Guard. USCG Dallas, the second of these two ships (renamed to BRP Ramon Alcaraz), is expected in February 2013.

• Australia is not the only country where high commodity prices make it harder for its Navy to retain qualified personnel: Norway is facing similar issues.

• The administrative surcharge rate charged by the US through the Foreign Military Sales (FMS) is down from 3.8% to 3.5%, effective today.

• The Center for American Progress and the Institute for Policy Studies, two left-wing American think tanks, are advocating the implementation of a unified security budget, and defense budget cuts at the scale, but not in the shape, of the sequester. PDF report.

• In the US Army’s latest Q&A about the Service Life Extension Program (SLEP) it plans for its fleet of Landing Craft Utility 2000 (LCU 2000) vessels, a point small businesses need to understand beyond this one program: “component (replace/refurbish) decisions would be made by the prime contractor.” An Industry Day should take place next December or January. TACOM.

• Switzerland’s intelligence service reportedly advised in its weekly report for the Swiss Federal Council to consider participating in NATO’s European missile defense system. That would obviously be quite a break from neutrality. Tages-Anzeiger [in German].

Australia’s Coastwatch: A Public-Private Model for Coast Guards and CBP

Keeping watch

Australia’s long coast is also its border, and they’ve taken an innovative approach to the problem. Unlike, say, the US Coast Guard, Australia has semi-privatized the coastal patrol function, placing contractors under the Customs service. Once intruders are detected, these contractors can then call on pre-arranged support from civil authorities and/or the Royal Australian Navy and Air Force. Contracted services of this nature are becoming more common around the world, but Australia was really breaking new ground when they began Coastwatch on such a large scale in 1995.

Coastwatch was re-competed, and in 2006, Cobham’s subsidiary Surveillance Australia Pty Ltd retained the contract through the A$ 1+ billion next phase, called Project Sentinel. The new contract under Australia’s CMS04 (Civil Maritime Surveillance 04) program has expanded the fleet and addressed some concerns, but there are still areas where Australia lags a bit behind the leading edge. Even so, Coastwatch remain a touchstone program for countries considering a similar path.

ATK Remains USA’s Main Small Arms Ammo Supplier: FY 2013-2022

A single plant, dating from World War 2, still provides almost all of the US military’s small arms ammunition (up to 12.7mm). The Lake City Army Ammunition Plant in Missouri has been operated by ATK for a long time, and was the USA’s only facility until recently. Ammunition shortages forced the Army to add General Dynamics Ordnance and Tactical Systems in St Petersburg, FL as a limited 2nd supplier in 2005. That effort went hand-in-hand with modernization at Lake City, however, and even if orders escalated to 2 billion rounds per year, GD-OTS would provide only 300-500 million of those rounds.

In 2012, the US Army competed the management contract for Lake City, and Alliant Techsystem Operations LLC in Independence, MO won the contract again. The totals really add up.

Thailand’s Insurgency: The Blimp and I

Aria’s airship
(click to view larger)

In early 2009, Aria International, Inc. announced a contract from the Royal Thai Army to provide in-country surveillance and communications solutions and services, for an aggregate purchase price of $9.7 million. The RTA surveillance system consists of a manned airship with military-grade imaging and communications systems, an armored Command and Control vehicle, and upgrades to existing communications and facilities to receive real-time surveillance data.

Thailand has the questionable distinction of being saddled with the bloodiest Islamist insurgency most people have never heard of. The American export system that has hindered their order is well known around the world… but it looks like everything has been ironed out. Unfortunately, Thailand hasn’t been able to get much value out of its new asset.

• Thailand’s Airship Program [updated]
  
• Contracts & Key Events
  

Voted Off the Island: The USCG’s Deepwater FRC Cutters

CGC Sanibel

The USCG wants to buy 58 Fast Response Cutters (FRC), and these Sentinel Class boats are sorely needed by an overstretched US Coast Guard. An attempt to extend the lives of their aged Island Class cutters ended as an expensive failure in 2005, and string of blunders has delayed replacements. In February 2006, the Coast Guard’s Deepwater system-of-systems program ‘temporarily’ suspended design work on the FRC-A program due to technical risk. FRC-A was eventually canceled in favor of an off-the-shelf buy (FRC-B), and on March 14/07, the ICGS contractor consortium lost responsibility for the Deepwater FRC-B program as well. By then, even an off-the-shelf buy couldn’t get the Coast Guard any delivered replacements before April 2012.

When the Island Class refurbishment program was terminated in June 2005, 41 Island Class vessels like the USCGC Sanibel, above, still plied US and international waters. FRC Sentinnel Class deliveries have begun, but the Island Class’ safe lifetime is running out fast. DID discusses the programs, their outcomes and controversies, the fate of the Island Class and FRC-A programs, and the work underway to replace them.

Canada’s Mounties Buy Huskies

MXT Husky

In late July, Canada’s RCMP(Royal Canadian Mounted Police, aka. “Mounties”) federal police force took delivery of 18 new Tactical Armoured Vehicles (TAVs), based on Navistar’s MXT-APC. Navistar’s MXTs are about twice as heavy as a Humvee, but would still be considered light by the standards of blast-resistant “MRAP/PPV” vehicles. The Canadian “TAVs” were bought under a $14 million contract, and will be used by Emergency Response Teams (ERTs) across Canada as their primary support vehicle. They’re designed for incidents including hostage takings, armed standoffs, barricaded persons and search and rescue operations, using a blueprint that came from Navistar Defence Canada Inc. in cooperation with RCMP engineers.

Britain is the MXT’s biggest customer, and their “Huskies” are deployed to Afghanistan. The RCMP is Navistar’s 1st MXT vehicle sale to police-type units, and a having such a high-profile international customer makes for a good start in that area. On the flip side of that transaction, RCMP Commissioner Bob Paulson might want to avoid phrases like “We’re proud to have acquired this impressive tool,” when referring to new cars. After 139 years, we suppose that every organization is entitled to a minor mid-life crisis. RCMP | Navistar.

Persuader Patrol Planes for Mexico’s Maritime

Mexican CN-235 MPA

Mexico’s military needs have escalated, as the country faces what counter-terrorist analyst John Robb has called a growing “open source insurgency” composed primarily of narco-traffickers, with some leftist groups and political forces jockeying for position in the uncoordinated mix. By 2010, the violence associated with “The Cartel War” had reportedly claimed around 28,000 lives since 2006 – a figure that continues to rise steadily.

In response, the Mexican government has been signing contracts on a number of fronts, from full city-wide surveillance and monitoring systems, to UAVs and aerostats, to medium helicopters. More equipment is on the way, via Mexico’s own purchases and the USA’s Merida Initiative.

One of its most important acquisition programs is EADS-CASA’s popular CN-235 MPA maritime patrol aircraft, which currently serves with Spain, Colombia, Ireland, Turkey, and the US Coast Guard. Indonesia’s Digiranta has built them for Indonesia, Brunei and the UAE, and recently added South Korea’s Coast Guard as a customer. A May 1/08 Economist article may help to explain the importance of these aircraft to Mexico’s current Cartel War:

Up to $2B to Maintain & Upgrade USA’s E-4B NAOC Fleet

E-4B NAOC

In December 2005, the U.S. Air Force awarded Boeing a contract as Product Support Integrator (PSI) for the USAF’s E-4 National Airborne Operations Center fleet. These four 747-200 derivatives were introduced in 1974, and serve as complete flying command posts for national and military authorities. As one might imagine, they are hardened to resist the side-effects of nuclear attack, such as electro-magnetic pulse effects.

The 2005 contract was a 5-year, indefinite delivery/indefinite quantity contract vehicle, with one 5-year option and a $2 billion cost cap. It continues a long history of support from Boeing…

• The E-4B and Its Update Team
  
• Contracts & Key Events [updated]
  

US Coast Guard’s Deepwater Effort Sinks

The US Coast Guard is currently operating vessels that date from the 1950s and 1960s, and a fleet-wide recapitalization is becoming an urgent priority given its new domestic security responsibilities. That effort is being handled as an integrated, multi-year $25 billion project called Deepwater that encompasses everything from long-range patrol aircraft and UAVs, to new communications and computing backbones, to new ship designs. Integrated Coast Guard Systems (ICGS), a joint venture between Lockheed Martin and Northrop Grumman, has been serving as the program’s overall system-of-systems integrator.

Deepwater has been fraught with difficulties since the program’s inception. The Coast Guard was guaranteed a rough ride due to the issues with its existing fleet and lower status than the military services; its choice of program structure has also received negative reviews (as well as some official reports of improvement) for some time. DID offers some quick pointers to the New York Times and Washington Post articles covering Deepwater, as well as links to additional in-depth background from agencies like the GAO and our own previous coverage.

• Deepwater 2006: A Gathering Storm
  
• Deepwater: Key Updates [NEW]
  
• Additional Readings [updated]