Det danske Fredsakademi

Kronologi over fredssagen og international politik 30. november 2006 / Timeline November 30, 2006

29. November 2006, December 2006

11/30/2006
Russians Making Major Gains in a Rebounding Latin American Defense Market
Forecast International
(NEWTOWN, Conn., November 30, 2006) -- Russia's efforts to market military equipment to Latin America are bearing fruit. According to Forecast International's annual survey of the Latin American defense market, while initial market penetration came in the form of helicopter orders from Mexico, Venezuela is now chalking up the biggest sales. A series of orders for helicopters and assault rifles, among other items, was capped by a July sale of 24 Sukhoi Su-30 fighters, bringing to $3 billion the value of deals signed with Venezuela in less than two years.
The Venezuelans are now expected to place orders for additional helicopters, as well as tactical transport aircraft, submarines, and air defense systems. However, while high oil prices are funding these procurements, the recent softening of these prices could force Venezuela to reduce the scope of its planned purchases.
The Russians have made inroads in other Latin American countries as well, including Colombia and Uruguay, with Brazil, Chile, and Ecuador potential customers. Argentina may prove a major sales opportunity, now that the Argentinian legislature has approved a military accord signed by the two governments. The Russians are offering an array of products, but the Argentinians are primarily interested in helicopters, transport aircraft, and air defense systems.
Argentina's interest is directly tied to a revitalization of the military's force structure, which follows years of tight funding. The Argentinian military has considerable pent-up re-equipment needs, although spending levels will remain contingent on economic conditions.
"The reviving defense market in Argentina appears to be only part of what is developing into an overall regional move toward re-equipment after long years of austere budgets," said Latin America analyst Tom Baranauskas. "The Chilean military has been at the forefront, using windfall copper income acquired via the so-called Copper Law to carry out a thorough re-equipment program that has included the purchase of F-16 fighters, used frigates, and new submarines. Venezuela has now taken over the lead, but other nations are dusting off requirements lists or drawing up new lists."
Chile and Venezuela's arms buildup has raised some concerns in neighboring countries. Colombia plans to increase spending on conventional warfare after concentrating for years on counterinsurgency. The Brazilian military appears to be using Venezuela's military buying spree to prod the national government into action. Indeed, the Air Force's next-generation fighter requirement now shows signs of being revived after what appeared to be a cancellation. Meanwhile, Bolivia and Peru field dated and inadequate force structures compared to Chile's, while Paraguay is increasing military spending in the face of Bolivia's closer ties with Venezuela.
While some might characterize these developments as an arms race, much of the activity still only represents attempts by governments to finally address long pent-up requirements. Since so much of the equipment is obsolete, the scope of the replacement needs is significant. FI's forecast for overall military spending in the region calls for a moderate rise to $39.9 billion in 2010, after which spending will ease slightly. Of this amount, only about 20 percent is earmarked for procurement of equipment (of all types), but this still represents a sizable market.

11/30/2006
CONTRACTS from the United States Department of Defense
Northrop Grumman Newport News, Newport News, Va., is being awarded a $754,011,210 modification (cost type) to previously awarded contract (N00024-04-C-2118) for continuation of CVN 21 design effort; long lead time material and non-nuclear advance construction; and system development, engineering services, and feasibility studies for the Future Aircraft Carrier Program. Also will provide all CVN 21 services and material in preparation for ship construction planned to commence in FY08, including the necessary research studies; engineering; design; related development efforts including required Engineering Development Models and prototypes for engineered components; advanced planning; advanced procurement for detailed design and procurement/fabrication of long lead material; advanced construction, system specifications; design weight estimate; logistics data; lists of government-furnished equipment; production planning; further definition of initiatives to reduce CVN 21 total ownership costs; and other data to support an integrated product data environment for CVN 21. Work will be performed in Newport News, Va. (90 percent) and Groton, Conn. (10 percent), and is expected to be completed by December 2007. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
L3/Interstate Electronics Corporation, Anaheim, Calif., is being awarded a $27,190,543 cost-plus-fixed-fee, level of effort contract to provide specialized technical engineering services to operate, maintain and repair the TRIDENT II (D5) test instrumentation subsystems, spares, and related support equipment in support of the U.S. TRIDENT II (D-5) weapon systems. This effort shall include the operation and maintenance of the Launch Area Support Ship (LASS) Flight Test Support System, the M250 test missile radio frequency set, and M240R Data Recording System (DRS). The contractor will monitor and provide recommendations/updates to the formal training materials, documentation, and hardware/software utilized in the Strategic Weapons System (SWS) training program. Work will be performed in Anaheim, Calif., and the expected completion date is May 2008. Contract funds will expire at the end of current fiscal year. This contract was not competitively procured. Strategic Systems Programs, Arlington, Va., is the contracting activity (N00030-07-C-0010).
Science Applications International Corp., San Diego, Calif., is being awarded a $9,567,102 modification to a previously awarded cost-plus-fixed-fee contract (N00421-05-C-0026) to exercise an option for technical, engineering, and program services in support of the Tomahawk-All-Up-Round Missile Program for the U.S. Navy ($8,565,102; 95 percent) and the United Kingdom ($1,002,000; 5 percent). Work will be performed in Patuxent River, Md. (85 percent); Lexington Park, Md., (10 percent); and other locations within the United States (5 percent), and is expected to be completed in November 2007. Contract funds will not expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity.
Lockheed Martin Space Systems Corp., Sunnyvale, Calif., is being awarded a $60,734,000 cost-plus-award-fee contract modification. This contract provides for Orbital Operating Support (OOS) for Satellite Operations and Sustainment of the Milstar and Defense Satellite Communications System (DSCS) III programs. The contract action exercises an existing option on the contract for the fourth year of performance of the five year contract. The period of performance for this effort is 1 December 2006 through 30 November 2007. At this time, total funds have been obligated. This work will be complete by November 2007. Headquarters Military Satellite Communications Systems Wing, Los Angeles Air Force Base, Calif., is the contracting activity (FA8808-04-C-0012/P00046).

11/30/2006

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