U.S. Air Force Awards Hypersonic Weapon Contract as Pentagon Continues Broader Development Efforts

by Shaun McDougall, Military Markets AnalystForecast International.

High-Temperature Structures Concept Image
Source: Lockheed Martin

Lockheed Martin has been awarded a contract worth up to $480 million for the conduct of a Critical Design Review and to provide test and production readiness support for the U.S. Air Force’s Air-Launched Rapid Response Weapon (ARRW, pronounced “Arrow”), one of the service’s ongoing hypersonic weapon development efforts.  The Air Force is obligating $5 million at time of award.  Contract work will be performed in Orlando, Florida, and is expected to be completed by November 30, 2021.     Continue reading

Strong Forecast for New-Build Submarines Drives Sales of Advanced Periscope System

by Andrew Dardine, Electronic Systems Analyst, Forecast International.

Virginia class, North Carolina (SSN 777)

The U.S. Navy has recently awarded $20 million in contracts to L3 KEO for production and support of non-penetrating periscopes (NPPs).  Work on the first NPPs will be performed in Bologna, Italy and Northampton, Massachusetts, and is expected to be completed by April 2020. Continue reading

Lockheed Martin’s LRDR Selected for Japanese AEGIS Ashore Ballistic Missile Defense Sites

by C. Zachary Hofer, Electronic Systems Analyst, Forecast International.

Aegis Ashore installation. Source: Lockheed Martin

On July 30, the Japanese Ministry of Defense announced that it had decided to procure Lockheed Martin’s radar over rival Raytheon’s to equip two AEGIS Ashore installations. AEGIS Ashore is a U.S. military technology for land-based ballistic missile defense and early warning derived from a long-standing naval AEGIS program. Continue reading

Trump Administration Moves Space Force Plans Forward

by Bill Ostrove, Space Systems Analyst, Forecast International.

Space Force logo designs were released by the Trump campaign to supporters for a vote. Source: Trump campaign

With a speech by Vice President Mike Pence, along with an interim report issued by the Pentagon, the U.S. government has begun laying out its plan to create a Space Force as a branch of the U.S. military. The plans will shake up an organization that has managed the launch of 116 satellites over the past eight years. Continue reading

After Counterinsurgency Victory, Syria Looks to Rearm

by Derek Bisaccio, International Military Markets Analyst, Forecast International.

Syrian President Bashar al-Assad meets with Russian President Vladimir Putin, Defense Minister Sergei Shoigu, and Chief of General Staff Valery Gerasimov in November 2017. Source: Russian Presidency website

More than seven years after domestic protests broke out against the Syrian government and President Bashar al-Assad, the Syrian military, with Iranian and Russian backing, has achieved victory over insurgent forces. Pockets of anti-government forces certainly remain, including in the southwest and southeast of Syria, as well as the province of Idlib in the northwest, and a large question mark hangs over the future of the Syrian government’s relations with the U.S.-protected People’s Protection Units (known by the Kurdish acronym YPG) and of portions of rebel territory where Turkey has deployed troops. Nevertheless, the war for the ouster of President Assad is at its conclusion. Continue reading

Congress Releases FY19 Defense Policy Bill

by Shaun McDougall, Military Markets AnalystForecast International.

USS John C. Stennis (CVN 74) and USS Ronald Reagan (CVN 76) conduct strike group operations.
Source: U.S. Navy

U.S. House and Senate lawmakers completed the conference markup of the FY19 defense authorization bill on July 23.  The defense policy bill adheres to the spending levels agreed upon in the bipartisan budget act, providing a defense base budget of $639.1 billion.  That figure comprises $616.9 billion in discretionary funding for the Department of Defense, $21.9 billion for nuclear programs in the Department of Energy, and around $300 million for defense-related activities outside the DoD.  Another $69 billion is provided for Overseas Contingency Operations, for a total of $708.1 billion in discretionary defense spending.  When including $8.9 billion in mandatory spending, the FY19 topline authorized in the legislation totals $717 billion.  The separate congressional appropriations process will finalize how much money the military actually has available to spend in FY19.

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The U.S. Defense Budget: Balancing Need Against Cost

by Greg Giaquinto, Electronic Systems Analyst, Forecast International.

According to The Guardian, President Donald Trump’s call for a major boost in U.S. military spending has been met with an uproar from opponents warning that such a policy would waste millions of taxpayer dollars.  To lend perspective on the issue, in fiscal year 2015, military spending in the United States accounted for 54 percent of all federal discretionary spending, according to the Institute for Policy Studies.  Right now the U.S. military has the ability to fight just under two world wars simultaneously.  The International Institute for Strategic Studies says the U.S. accounts for more than a third of the world’s military spending. Continue reading

Top 100 Federal Contractors FY2017

by Richard Pettibone, Aerospace & Defense Companies Analyst, Forecast International.

F-35B & F-35C in formation. Photo: Lockheed Martin

The General Services Administration’s U.S. Federal Procurement Data System – Next Generation released its annual Top 100 Federal Contractors report – Fiscal Year 2017.  The top 100 federal contractors accounted for $283 billion of the obligated dollars, up 8 percent compared to $262 billion in FY16. Lockheed Martin remains the dominant contractor with $50.7 billion (almost 10% of the obligated total), followed by Boeing with $23.4 billion (4.6% of the obligated total). Continue reading

Egypt Leverages Diversified Arms Suppliers to Escape U.S. Pressure

by Derek Bisaccio, International Military Markets Analyst, Forecast International.

Egyptian President Abdel Fattah el-Sisi (R) meets with Russian President Vladimir Putin (L) in Cairo, December 2017.   Source: Russian presidency website.

Earlier this month, La Tribune reported that France and Egypt are moving forward on negotiations for another sale of Dassault Rafale fighter jets to the Egyptian Air Force.[i] Cairo and Paris are said to be negotiating on a new agreement for the sale of up to two dozen Rafales to Egypt, on top of the initial group of 24 ordered in 2015. Furthermore, Egypt may procure another two Gowind 2500 corvettes and is interested in French drones and helicopters. Continue reading

Congressional Appropriators Boost F-35 Production

by Shaun McDougall, Military Markets AnalystForecast International.

F-35C Completes Flyover of USS Zumwalt (DDG 1000) Source: U.S. Navy

The F-35 Joint Strike Fighter program is poised for a boost in 2019, as two U.S. congressional defense panels have signed off on additional aircraft for the Department of Defense.  Precisely how many additional aircraft each service will receive must be ironed out in conference committee.  This plus-up contrasts with the House and Senate Armed Services Committees, both of which expressed concern about the F-35 production ramp-up.  Continue reading