Russia May Fly Military Cargo to Syria: Report------------Defense News

MOSCOW — Russia may decide to fly a controversial military cargo of helicopters and air defense systems to Syria after it abandoned an attempt to ship the material by sea, according to a June 27 report.
The West wants Russia to halt military cooperation with Syria because of the escalating conflict between the Damascus regime and rebels, but Moscow has insisted it cannot break contracts.
A freighter, the Alaed, docked in the Russian Arctic port of Murmansk over the weekend after turning back off the British coast. The ship halted its voyage to Syria to deliver the military cargo when its British insurer dropped coverage.
“The three Mi-25 helicopters and air defense systems could easily be delivered to Syria by air,” a military source, who was not identified, told the Interfax news agency.
“Russia has to fulfill its obligations. But everything will depend on if we can resist pressure from the West, who want us to break military cooperation with Syria,” the source said, adding a decision would be made soon.
Russian Foreign Minister Sergei Lavrov has confirmed the Alaed was carrying three attack helicopters Moscow had repaired for Damascus under a previous agreement.
He said last week the cargo also included air defense systems but gave no further details on the type or quantity on board.
Russia delivers a range of limited air defense systems to Syria but reportedly has refused to provide the more advanced S-300 technology that it had previously also failed to give to Iran under Western pressure.
The Vedomosti business daily reported June 26 that Russia this year chose to withhold the S-300 from Syria, despite a $105 million delivery contract being signed by the system’s producer and Damascus in 2011.
Military experts have speculated that the Alaed was carrying the more basic Russian Buk-M2e air defense systems for Syria, whose forces last week shot down a Turkish warplane off the Syrian coast.
In Murmansk, the Alaed’s flag has been changed to a Russian flag from that of the Caribbean island of Curacao.
But Russia has yet to confirm if the ship will now make a repeat attempt to reach the Syrian port of Tartus or travel on to Russia’s Far East port city of Vladivostok as originally planned.

U.S. Army To Begin Apache Block III Testing

The U.S. Army will begin operational testing of its new Block III version of the AH-64D Apache helicopter gunship in March, a service official told reporters Jan. 12.

"We're got the initial operational test and evaluation - the IOT&E - is taking place in March," said Col. Shane Openshaw, the Army's program manager for the Apache, at a luncheon hosted by Boeing. "The results of that will feed analysis and ultimately support a full-rate production decision that is scheduled for July or August of this year."

In the meantime, the Army is finishing up production of the Block II version of the venerable gunship.

The Army is down a fleet of less than 18 A-model Apaches "in tactical units" which need to be rebuilt into Block II aircraft, Openshaw said. The last of those remaining A-model aircraft will begin being remanufactured in May, he said. They will be the last Block II Apaches the Army is buying and will be delivered next summer.

"This comes at the just the right time. You just slip this through just as the budgets were shrinking down," said Dan Goure, an analyst at the Lexington Institute, Arlington, Va. "And now you have an attack helicopter fleet that will last you for quite a while."

Goure said the Block III will likely weather the looming budgetary cuts - which many expect will hit the U.S. ground forces the hardest - largely intact. "It's so close to being finished, if you don't, you'll end up with the additional cost for a very long time of a split fleet," he said, noting also that the AH-64D will be the core of the U.S. attack helicopter fleet for decades to come and will need to continue to be upgraded.

The Apache will continue evolve over the years, and will continue to add new technologies and new capabilities just as it always has, Openshaw said. The soon-to-be-operational Block III helicopter adds level-four control of unmanned aircraft, which means Apache pilots will be able control a drone's sensors and set way points for the remotely operated machine. By contrast the Block II offered only the ability to view video imagery from an unmanned aircraft.

An upgraded Apache might eventually pave the way for next generation helicopters that might emerge from the Army's Joint Multi-Role (JMR) project, Openshaw said.

"I believe that many of these kinds of technologies that we are current working on today will show up as subtle configuration changes to Apache overtime that will ultimately be the raw material, if you will, that will feed JMR," Openshaw said.

White House Permits Defense Exports to South Sudan

U.S. President Barack Obama has given his approval for the sale of weapons and defense services to South Sudan, possibly paving the way for purchases of air defense systems, equipment the South has been asking for since before its independence.

SOUTH SUDANESE SOLDIERS march with their national flag during a military parade marking South Sudan's independence in July. (Phil Moore / Getty via AFP)

In a Jan. 6 memo sent to Secretary of State Hillary Clinton, Obama said that the "furnishing of defense articles and defense services to the Republic of South Sudan will strengthen the security of the United States and promote world peace."

The Republic of South Sudan, which officially declared its independence from Sudan in July, faces a number of internal and external security challenges.

Inside the country, violent tribal clashes in the state of Jonglei have resulted in the death and displacement of thousands of people. In response, the United Nations has launched major emergency and food distribution operations.

Meanwhile, tensions continue to rise between South Sudan and Sudan, which is accused of attacking the southern country using aerial bombardments.

Sudan ended a decades-long civil war in 2005, at which point the southern region was granted autonomy but not independence.

Last January, South Sudan overwhelmingly voted for its independence from Sudan, news welcomed by the Obama Administration, which, along with the U.S. Congress, has been a strong supporter of the independent state.

However, over the last year, attacks and border incursions by the north have continued and some believe the two countries are lurching toward war.

"It is becoming more likely almost by the day," Eric Reeves, a professor at Smith College and a Sudan researcher and analyst, said.

Reeves said he hoped Obama's executive order would allow South Sudan to buy the defensive military capabilities it needs to protect itself.

E.J. Hogendoorn, Horn of Africa project director at the International Crisis Group, called the order "quite significant given the fact that there has been a very significant ramp of tensions between Sudan and the Republic of South Sudan."

"I have to imagine that part of the discussion within the administration was: 'What kind of signal does this send?'" Hogendoorn said.

Sudan's military capabilities far surpass those of South Sudan.

Sudan's air force includes MiG-29 Russian fighter jets, Soviet-built Hind helicopter gunships and troop transport aircraft.

The approval from the White House could open the door for South Sudan to acquire air defense systems, which some advocates of South Sudan have argued are long overdue.

"This determination is not a surprise, and indeed many feel as I do that it has been much too long in coming, especially given the enormous security challenges facing South Sudan," Reeves said.

In addition to air defense, South Sudan needs transport helicopters, communications gear and training to convert the Sudan People's Liberation Army (SPLA) from a guerilla force into a modern army, Reeves said. "One of the reasons that violence in Jonglei got out of hand was that both the U.N. and the SPLA had a tremendous amount of difficulty getting people into Pibor," the town under attack.

However, whether the White House's decision on weapons exports changes things on the ground, Reeves said it is too early to tell.

"Let's see what this thing actually translates into," he said. "It's an enabling action, but it does nothing on its own."

Turkey, France Row May Jeopardize Missile Sale

PARIS - Turkey's suspension of military cooperation with France may make it harder to sell the Franco-Italian Aster 30 air defense missile to the Turkish authorities, a defense executive said Dec. 23.

Ankara froze bilateral defense cooperation and recalled its ambassador to France in retaliation to a new French law making it illegal to deny that genocides took place, including the deaths of Armenians in 1915.

"It doesn't make things easier, that's for sure," the executive said. "That makes relations tense with France."

Eurosam, a joint venture between French electronics company Thales and European missile maker MBDA, is prime contractor for the Sol-Air Moyenne Portée/Terrestre (SAMP/T) ground-based air defense system.

The SAMP/T system is competing in Turkey's tender for a long-range air and missile defense system. It is ranged against the Patriot missile from Lockheed Martin and Raytheon, the S300 from Russia's Rosoboronexport, and the HQ-9 from China Precision Machinery Import-Export Corp. (CPMIEC).

MBDA's team in Turkey is led by its Italian side, as there are strong industrial ties between Italy and Turkey, including cooperation between AgustaWestland and Turkish Aerospace Industries on the T-129 light attack helicopter.

"The SAMP/T offer in Turkey is officially made by Eurosam … but MBDA's Italian arm has effectively been the front office for the offer for a while now due to the ongoing friction between Turkey and France due in part to the genocide issue," said an Italian industrial source.

The SAMP/T is based on the MBDA Aster 30 missile and Thales Arabel multifunction radar. France and Italy were launch customers of the SAMP/T.

Between 2006 and 2010, France delivered a total 203.6 million euros of arms to Turkey, the latest annual report to parliament on French foreign military sales showed.

That made an annual average 40 million euros, or around 1 pct of average annual sales of 4 billion-5 billion euros.

As part of Ankara's response to the new law, French military aircraft cannot overfly or land on Turkish territory, French warships may not dock at its ports, and joint military exercises are canceled.

"From now on, we are revising our relations with France," Turkish Prime Minister Recep Tayyip Erdogan said, AFP reported.

French lawmakers adopted the new law Dec. 22.

Pakistan blames “Afghan commander” for Nato attack: BBC

KARACHI: According to a BBC report, Pakistan’s military officials on Monday blamed an Afghan commander for the November 26 Nato strike on Salala check post in Mohmand agency, DawnNews reported.

The British Broadcasting Corporation (BBC) reported that the accused Afghan commander conspired on the instructions of Indian and Afghan intelligence to dismantle Pakistan’s ties with US and Nato.

According to the published report, Pakistani military officials were probing the incident on their own and also handed few details of the investigative report to their Nato counterparts across the border on Monday.

Pakistani officials demanded action against the accused Afghan National Army commander by Nato officials in Afghanistan.

Pakistan’s investigative report did not indicate involvement of any American officials in the attack.

According to the report Afghani troops, without any prior notice, were patrolling an area at Pak-Afghan border which required 72 hours prior notice to Pakistani forces.

The troops deployed at Salala check post opened fire on Afghan patrol team considering them militants and subsequently Nato air defence helicopters, came to afghan team’s rescue, attacked the Pakistani post.

According to Pakistan officials, Afghans knew exact location of the post hence calling Nato for help was a pre-planned scheme.

However the ISPR rebuffed the BBC report calling it inaccurate.

U.S. Vows to Back Turkey Over Kurdish Rebels

ANKARA - The United States will maintain its support of Turkey in the fight against Kurdish rebels, visiting U.S. Defense Secretary Leon Panetta said Dec. 16.

"In my discussions here in Ankara, I made very clear that the United States would continue to assist Turkey in confronting this threat," Panetta told a press conference.

The United States said in October it planned to sell Turkey with three new Super Cobra attack helicopters for the campaign against the Kurdistan Workers' Party (PKK), in a deal worth $111 million.

The PKK, listed as a terrorist group by Ankara and much of the international community including Washington, took up arms in Kurdish-majority southeast Turkey in 1984, sparking a conflict that has claimed about 45,000 lives.

The United States also said in November it was redeploying four Predator drones to Turkey from northern Iraq, with the withdrawal of U.S. troops from the country.

"We're prepared to discuss further efforts to try to improve the capabilities" of Turkey regarding drones, Panetta said without elaborating.

Some members of the U.S. Congress are opposed to the possible provision of drones to Ankara as they are concerned about the strained ties between Turkey and Israel.

"We try to share that information with the Congress so that they understand why this is important we take those steps. We continue to explore other steps that can be taken to assist Turkey in the effort to deal with the PKK," Panetta said.

Relations between one-time allies Turkey and Israel plunged into crisis after Israeli commandos killed nine Turks on board a flagship of a flotilla bound for the Gaza Strip last year.

U.S.: Pakistan Not Cooperating in Air Strike Probe

WASHINGTON - Pakistan is refusing to take part in a U.S. military investigation of air strikes near the Afghan border that left 24 Pakistani soldiers dead, the Pentagon said Dec. 2.

Pakistan was invited to cooperate in the probe into the Nov. 26 incident, which has enraged Islamabad and plunged U.S.-Pakistani relations into crisis, but officials have declined to do so.

"They have elected to date not to participate, but we would welcome their participation," said Pentagon press secretary George Little.

U.S. officials expected a refusal given the fury in Pakistan following the incident, which led Islamabad to block NATO supply convoys on its border and boycott an international conference on Afghanistan in Bonn set for Dec. 2.

The United States has voiced regret over the strikes but has stopped short of issuing an apology while the American military conducts the investigation.

"It's safe to say that the incident has had a chilling effect on our relationship with the Pakistani military, no question about that," spokesman Capt. John Kirby told reporters.

"Both sides deem it to be as serious as it was."

U.S. commanders and intelligence chiefs have long sought to cultivate relations with Pakistan's army, the country's most powerful institution, but the air strikes have caused outrage among the army's junior officers and fed popular resentment of Washington.

The Pakistani army called the strikes a "deliberate act of aggression" but U.S. officials have declined to discuss publicly what transpired at two Pakistani border posts.

Kirby suggested the U.S. military would review its operations and tactics for forces stationed in eastern Afghanistan in the aftermath of the deadly strikes.

"Clearly, an incident like this causes you - and should cause you - to take a step back and look at how you're doing things and whether there need to be improvements made or any kind of tactical decisions ...(to) do things a little differently," Kirby said.

"And General (John) Allen is doing that," he said, referring to the top U.S. and NATO commander in Afghanistan.

Asked about reports that Pakistan's army has ordered troops to retaliate immediately if fired on, Kirby said that "every sovereign nation has the right of self-defense and the right to order their troops to defend themselves."

The Wall Street Journal, citing unnamed officials, reported Dec. 2 that Pakistan approved the air strikes that killed their troops, unaware that its forces were in the area.

But at the Pentagon news conference, Kirby declined to confirm or deny the report.

USMC F-35B Training Likely To Begin in Aug. 2012

The U.S. Marine Corps could start training new students to fly its F-35B short take-off vertical (STOVL) landing version of the Joint Strike Fighter (JSF) in August 2012, a senior Defense Department official said.

The DoD has opted to use an approach based on reducing risks prior to starting training operations at Eglin Air Force Base (AFB), Fla., current and former officials said. As such the Pentagon has not set a specific date to issue a military flight release. Instead, the start of training will be "event driven."

Currently "[The U.S. Air Force and Department of the Navy] are waiting for aircraft flight clearance for test pilot maturation flights," a senior DoD official said. Further, "both services are still trying to determine how many maturation hours are needed by test pilots before instructor pilots and then students can be trained."

But if everything goes as currently planned, the Marine Corps students will probably start flying their version of the Lightning II around August 2012.

"Looks like training for STOVL students may go around August of this coming year," the official said. "Once student training starts, it will include all modes including STOVL."

Originally, the STOVL training was projected to start around April 2012. Air Force pilots will likely start training in the F-35A conventional-takeoff version months before the Marines, as previously planned.

But before Marines or any other students take to the air, the F-35 will have to undertake initial maturation flights, using the jet's conventional takeoff and landing mode in the case of the STOVL aircraft. Once clearance is received, the F-35B will fly using all of its modes.

"Nobody wants to go too fast, but on the other hand nobody wants to go too slow," said former Marine Corps deputy commandant for aviation, retired Lt. Gen. George Trautman. "At the end of the day it's going to be informed subjectivity where the leadership decides what sorties need to be flown in the maturation phase. I trust their collective judgment."

Retired Marine Lt. Gen. Emerson Gardner, a former aviator and deputy director of the Pentagon's Cost Assessment and Program Evaluation (CAPE) office, agreed.

"This is a validation of the Marine Corps' event-driven process to achieving initial operating capability," he said. "Instead of identifying specific dates for levels of capability, they have identified which capabilities/levels of proficiency need to be demonstrated before moving to the next level and developed a stair step process to achieving it."

Trautman said that there is an ongoing debate about how many maturation hours the F-35 needs before operational pilots should start flying it.

"I'm actually hoping it doesn't take till August," he said. "There has been a dialogue going on about how many maturation hours are required."

The debate, which is taking place between engineers and other official at Naval Air Systems Command and the Air Force's Aeronautical System Center, stems from the fact the aircraft at Eglin are operational planes flown by fleet pilots, not instrumented like test aircraft at Edwards AFB, Calif., or Naval Air Station (NAS) Patuxent River, Md., Trautman said.

But when it happens, the start of training operations will be an important milestone for the F-35 program.

"Whenever it occurs, absolutely it's a huge deal," Trautman said. "We want to start flying the airplane, we want to start getting the training cadre, the instructor cadre, up to speed so we can start getting students through there."

The sooner the maturation requirements can be met, the sooner the Marines can get pilots through the training pipeline, he said. Getting a base of trained pilots would then allow the Marines to move on to spooling up the first operational F-35B squadron at the Marines' base in Yuma, Az.

"It's been slower in the past year than we would have hoped, but there is lots of indication that the pace is going to pick-up. As it picks up, and things continue to go well for the program, that's the path that they're on, to stand-up that first squadron in Yuma," Trautman said. "It's just the normal evolution of things and it's good to know we're moving in that direction."

Gardner agreed.

"The Corps has begun the transition of all of its aviation inventory over the past decade, from MV-22s to UH-1Ys to AH-1Zs and now to the F-35B. Based on that history, they have learned to be event-driven and not calendar driven," he said. "The fact that they are continuing to move down this path confirms their confidence in the capability and should hearten supporters of the program."

U.S. Army Receives First of Latest Apaches

MESA, Ariz. - Amid fanfare and after an Apache tribal blessing, the most lethal and technologically sophisticated attack helicopter in the world has been delivered to the U.S. Army by its Mesa manufacturer.
Named after the Native American tribe, the AH-64D Longbow Apache Block III is geared to meet next-generation battlefield challenges with high-tech gear such as sensors that allow pilots to guide unmanned aircraft to their targets, Army officials said Nov. 2.

"Our enemy is ruthless," said Maj. Gen. Anthony Crutchfield, commanding general of the Army Aviation Center of Excellence at Fort Rucker, Ala. "They are determined. They are adaptive ... and we must be adaptive and innovative."
Crutchfield was among 500 Army officers and enlisted personnel, Boeing employees and international customers, and public officials who celebrated the delivery of the first five Block III Apaches during ceremonies at The Boeing Co. plant where the aircraft is made.
Although the festive event portrayed the helicopter's devastating power, White Mountain Apache Tribal Chairman Ronnie Lupe concentrated on its lifesaving ability as he blessed the helicopters in a spiritual ceremony.
Holding eagle feathers as white smoke from a nearby smoldering pot of sage dissipated in heavy wind gusts, Lupe and two other tribal members approached one of the helicopters, touching it with the feathers during the early morning ritual on an asphalt flight line.
"That prayer was to the creator for the warrior in hopes that the warrior would return," said Crutchfield, who is of Native American heritage.
Jerry Gloshay, Lupe's executive assistant, said the tribal leader views the aircraft as a "living bird that is sort of like the Apache warrior."
"He wants to have a blessing, not in the light of the helicopter being on the attack mode, but rather how it is going to protect the family's well-being in the future," he said.
Gloshay said Lupe, a Korean War veteran who served with the U.S. Marine Corps' 1st Division, blessed the original "A" model of the Apache helicopter when it was built in 1984.
The war, which began in 1950, gave birth to the Marines' first helicopter unit specifically formed for combat.
Public officials attending the ceremony talked of a different type of blessing from the continued production of the rotorcraft at The Boeing Co. plant.
"I like to say that Mesa is the epicenter of Boeing rotorcraft," Mesa Mayor Scott Smith said. "Apaches bring 4,500-plus employees to this site. ...We look forward to another 30 years of growth, accomplishment and pride."
The helicopters are being built under a $247 million deal with the Defense Department.
The first phase of production will lead to the manufacture of 690 of the Block III aircraft for the Army, which could extend production for nearly a decade or more, according to Boeing officials.
The Army plans to acquire the helicopters between now and 2026 at a production rate of about two battalions per year, according to the Army. Of this amount, 643 will be remanufactured aircraft and 56 will be new.
Since the first Apache, called the A model, was delivered, more than 1,700 various models of the rotorcraft have been manufactured for the Army and U.S. allied forces.

USMC to Test Communications-jamming Device

A U.S. Marine Corps AV-8B Harrier jump jet squadron is set to conduct trials on the services' new Intrepid Tiger II communications intelligence and jamming pod next month.

The device is an open-architecture, commercially derived unit built by the service to quickly and effectively field state-of-the-art electronic attack capabilities on a limited budget. This will be the second iteration of the pod.

Each pod - which is integrated by the service itself, not a contractor - costs less than $600,000 and can be upgraded by simply replacing off-the-shelf internal components without exhaustive integration work or testing, said U.S. Marine Lt. Col. Jason Schuette, who serves in the U.S. Navy's N88 office as the EA-6B and Marine Air Ground Taskforce (MAGTF) electronic warfare requirements officer. Schuette was speaking at the Lexington Institute's Electronic Attack Capitol Hill Conference on July 28.

"In fact, in two years, when I get ready to upgrade whatever is inside this pod, I will just pullout the part and put in the new one," Schuette said of upgrading the device to it's future Intrepid Tiger II configuration. "I will [not] rely on industry to continue to make a part that is old and obsolete; I'll put in the new one."

Eventually the pod will not only collect communications intelligence and jam those transmissions, but also it will be upgraded to provide electronic support.

Schuette said the service was able to build the cheap and flexible pod by leveraging commercial development of the electronic hardware. New civilian hardware can produce very clean signals, he said.

The challenge, said Schuette, is the bureaucracy - the Marines have to convince the test community that the new part will not have to undergo an exhaustive test process from scratch.

"The challenge will be convincing the testing powers-that-be that we shouldn't have to go back and do all sorts integration testing to field this pod that we continue upgrade," Schuette said.

Timely fielding of new technology is critical in the fast moving electronic attack field because technology and threats change rapidly, he said. Fielding upgrades quickly is vital.

The pod will be tested next month with a Harrier squadron and will deploy in the fall if everything goes according to plan, Schuette said. But eventually the pod will also be carried on the F/A-18 Hornet fighter and AH-1 attack helicopters.

In keeping with Marine doctrine, the pod will be used to support Marine ground forces, whose radio battalions will control the pod from the surface. The pilot will be able to control the pod, but the idea is that Marines on the ground control the pod, eventually with a handheld device.

U.S. Army Defends Boeing on Overcharges

U.S. Army officials prefer to focus on the decreased repair turnaround times at a maintenance depot where Pentagon investigators found Boeing overcharged the Army $13 million on spare helicopter parts, not on the $10 roller assemblies that cost the Army more than $1,600.

A U.S. Apache helicopter fires rockets during a joint gunnery exercise. Pentagon investigators found Boeing overcharged the U.S. Army $13 million on spare helicopter parts. (Jung Yeon-Je / AFP via Getty Images)

The Army's Aviation and Missile Life Cycle Management Command bought the 18 parts highlighted in a recent Defense Department Inspector General's report, which made up the $13 million in overcharges. Soldiers and civilians used the parts at Corpus Christi Army Depot, Texas.

The DoD Inspector General's report highlighted extreme overcharges in comparing Boeing prices to those that would have been charged by the Defense Logistics Agency (DLA). In one case, Boeing charged the Army $71 for a straight pin that would have cost the service 4 cents from DLA. Boeing also charged $381.78 for a bolt retainer; DLA charges $6.77.
In all, the Army paid $23 million for the 18 sets of parts that should have cost the service $10 million, a 131 percent price hike, according to the full IG report, which was first released by the Project on Government Oversight.
However, the 18 parts highlighted in the report make up a small sliver of the 8,000 parts included in Boeing's contract with the Army, according to Dan O'Boyle, an Army spokesman. The price increase paid by the Army for the entirety of the contract is 17 percent, which was acceptable to service officials in order to cut down on back orders and keep up with increased maintenance needs for the wars in Iraq and Afghanistan, he said.
"It was recognized that using a material integrator would drive an estimated average material price increase of about 25 percent, based on lower parts quantities and immediate parts availability, but would be offset by the increase in parts availability and increased readiness," O'Boyle said in a statement.
Army officials credited Boeing with reducing back-ordered parts from 292 in 2004 down to 22, which led to an overall increase of readiness rates by 10 percent. Upon further inspection, O'Boyle said, the Army found that about 2,000 parts included in the contract are priced less than Army and DLA inventory prices.
The Corpus Christi Army Depot is a maintenance center used mainly for Army helicopters. Boeing builds the Army's AH-64 Apache attack helicopter and the CH-47 Chinook twin-rotor utility helicopter.
A previous Army audit of the initial contract could have caught the overcharges of the 18 parts, but the Army audit only covered "80 percent of the total dollars associated with the bill of material for this contract because of the magnitude of the parts involved," O'Boyle said.
A similar audit by the Defense Department Inspector General is taking place concerning purchases made for the same depot from Sikorsky Aircraft, according to the report.
The Defense Contract Audit Agency also is doing a full audit of actual costs expended on the contract, whereas the Defense Department IG "only sampled a portion of the contractor's expenditures," O'Boyle said in a statement.
"Given the wartime environment for Army aviation, more rotary aircraft today and flying six times above the peacetime flying hours, the critical support to these platforms could not have been achieved without this agreement," O'Boyle said in a statement.
After the Defense Department IG released its report, Boeing issued the Army a voluntary refund of $1.6 million for five types of parts, an Army official said.
"The handful of errors cited by the IG's initial report represents an extremely small part of our outstanding support to our U.S. Army customer," said Bob Algarotti, a Boeing spokesman. "Boeing voluntarily reimbursed the government for the items cited and already improved our process, which will prevent reoccurrence of these errors."
In the same Defense Department IG inspection that cited the 18 overcharged parts, inspectors found the Army had not used $339.7 million of inventory before buying the same parts from Boeing. The Army disputes that figure, saying $48.1 million is "actually excess at this point," O'Boyle said.
In response, the Army will use the Enterprise Resource Planning system to ensure that inventory is more visible. Army Materiel Command has "implemented a policy requiring the use of all on-hand inventory before the purchase of any additional material on performance-based contracts," O'Boyle said.

Western Jetmakers Vie For Asian Contracts

TAIPEI - As Western defense budgets crash, East Asian democracies could spend $23 billion within the decade on new fighter aircraft and upgrades, providing lucrative markets for European and U.S. aerospace and defense companies.

Japan released a request for proposals (RfP) in April for 40 fighters for its F-X program. The Boeing F/A-18E/F Super Hornet, Lockheed Martin F-35 Joint Strike Fighter (JSF) and Eurofighter Typhoon are fighting over the $4 billion deal. Bids are due in August with a contract award by the end of the year. The F-X will replace the Mitsubishi F-4EJ Kai Phantoms due for retirement in 2015.

South Korea is expected to issue an RfP in January for its F-X Phase 3 program. While 60 aircraft likely will be involved, it may come in two tranches, with the first being 40. The Boeing F-15, Typhoon and F-35 are already positioning themselves for the $9 billion deal. The FX Phase 3 will replace aging F-4 Phantom and F-5 Tiger fighters. The RfP is expected for release in January.

Taiwan is an exception. Due to Chinese pressure, the U.S. ignored a 2006 request for 66 F-16C/D Block 50/52 fighters for $5.5 billion. Taiwan also awaits a reply to a $4.5 billion request for an upgrade package for older F-16A/B Block 20 fighters in 2009.

With Western defense budgets under review and increasing pressure to pursue new market opportunities, European and U.S. combat aircraft manufacturers are "vigorously" engaging the East Asian fighter market, said Doug Barrie, senior fellow for military aerospace, U.K.-based International Institute for Strategic Studies.

"While Japan and South Korea have traditionally been U.S. combat aircraft customers, the present round of acquisition programs offers Europe an opportunity to break into the market," Barrie said.

European companies face an "uphill battle" to wrestle control of the fighter market from the U.S., which has "locked in markets" for fighter sales to the region for decades, said Richard Bitzinger, a defense industry analyst at the Institute of Defence and Strategic Studies, S. Rajaratnam School of International Studies, Singapore.

"The big question will be if the Europeans can break into this market," Bitzinger said. If not, there is future potential for European aerospace companies to participate in indigenous fifth-generation fighter programs in Japan and South Korea, but in terms of new fighter sales, "these countries are still owned by the USA," Bitzinger said.

Barrie said the Typhoon had its best shot at winning in South Korea, despite the fact Boeing won both F-X Phase 1 and 2 with 60 F-15K Slam Eagle fighters. Boeing might propose the stealthy F-15 Silent Eagle in an attempt to edge the Typhoon out of the competition, he said.

In Japan and South Korea, there is a major effort by the competitors to provide local production opportunities.

"The fighter choice in both countries will send a political signal as to the extent to which, if any, South Korea or Japan wants to begin to build a substantial defense-industrial relationship with their respective relationships with Washington," Barrie said.

Japan's F-X program experienced delays over an intense Japanese lobbying effort begun in 2007 to force Washington to release exports of the F-22 Raptor, but the U.S. Congress blocked the effort. After the F-22 rejection, Tokyo set its sights on the F-35, only to see the JSF effort dogged by delays and cost overruns, which postponed the F-X RfP last year.

Tokyo highlighted its interest in stealth by pursuing an indigenous fifth-generation fighter program. Now, Japan is "using their own fifth-generation fighter [TFX] as a bargaining chip" in the competition, but it is still in the research-and-development stage and "hideously expensive," Barrie said.

Japan is desperate to secure local manufacturing options for the F-X, but it is prohibitively expensive for only 40 aircraft. Manufacturing costs could be driven down by the procurement of more fighters to replace F-15Js, increasing the number of F-X fighters to more than 100 and lowering manufacturing costs.

Unless the F-X fighters are produced in Japan, the local fighter manufacturing industry faces dire straits. Japan's only remaining fighter production line, the Mitsubishi F-2, will end in September.

There are also budget concerns after Japan's devastating triple disaster - earthquake, tsunami and a nuclear power plant crisis - and many wonder how the estimated $300 billion price tag for the catastrophe will affect the F-X budget.

Cost issues could push Japan to select the Super Hornet or the Typhoon. Eurofighter officials have been promoting the Typhoon as a flexible, inexpensive alternative to the F/A-18 and F-35. A European industry source in Tokyo said technical restrictions hamper F-35 exports, while Eurofighter has "no black box policy," which means wider options for Japanese industry participation.

Yet the Japan-U.S. military alliance and pressure to procure a U.S. fighter may keep Tokyo from picking a European fighter.

Taiwan's request for new F-16C/Ds is seen as a follow-on request for an earlier procurement of F-16A/Bs in the 1990s. Despite Beijing protests, the U.S. Congress recently called for the White House to release new fighters and upgrade packages, including a request for a follow-on F-16 trainer program for Taiwan's 21st Tactical Fighter Squadron based at Luke Air Force Base, Ariz. In dollar amounts alone, as the U.S. economy declines, increased pressure on the White House to release the F-16s might be too great to withstand.

"In the case of Taiwan, irrespective of posturing on the part of Beijing, the delivery of F-16 Block 52s should proceed," Barrie said.

Taiwan bought $16.5 billion worth of U.S.­built arms and equipment from 2007 to 2010. Sales included 12 P-3C Orion Maritime Patrol Aircraft, 30 AH-64D Apache Longbow attack helicopters and 60 UH-60M Black Hawk utility helicopters. Taiwan has requirements for signal intelligence aircraft, attack jet trainers, basic aircraft trainers and UAVs.