$5.25M for Anti-Flu Inhaler Packages

Zanamivir/ Relenza

GlaxoSmithKline (GSK) in Philadelphia, PA received a maximum $5.25 million firm fixed price requirements contract for Zanamivir inhalation (Relenza) packages for the US Army, Navy, Air Force, and Marine Corps. There were 2 proposals solicited and 2 responded. Date of performance completion is March 31, 2007. The contract was issued by the Defense Supply Center Philadelphia in Philadelphia, PA (SP0200-06-D-0001).

Zanamivir/ Relenza is a powder that is inhaled twice a day for five days from a breath-activated plastic device called a Diskhaler for treatment of influenza. The FDA says that to reduce the risk of getting influenza, Relenza is inhaled once daily for 10 to 28 days as prescribed by a healthcare provider. Relenza is not recommended for people with underlying respiratory disease such as asthma or chronic obstructive pulmonary disease. Though it was introduced before Tamiflu, it has reportedly been all-but-abandoned in the market and is the subject of a $320 million lawsuit by its creator, Biota, against GlaxosmithKline.

It's possible that the US federal government's soon-to-be-released avian flu epidemic response plan (see also pandemicflu.gov) could give the drug new life in the government market. Or, it could just provide more lawsuit fodder.

Sikorsky Files Suit to Shield Corrective Action Requests

MH-60S: Flying low

The Project on Government Oversight (POGO) reports that New Haven, Connecticut WTNH News Channel 8 reporter Alan Cohn made a Freedom of Information Act (FOIA) request on March 4, 2004 to the Defense Contract Management Agency (DCMA) for Corrective Action Requests (CARs) related to helicopter-maker Sikorsky's work. CARs are requests to contractors by the DCMA to fix the causes of recurring problems that put the contractor out of compliance with its contract with the military.

After a series of appeals, DCMA partially granted Cohn's FOIA request. Sikorsky then filed suit against the DCMA and DOD in the US District Court for the District of Columbia on December 12, 2005 on four counts. POGO's blog has more details.

Domestic Titanium Requirements Become an Issue in US

Titanium's light weight, tremendous strength, and incredible heat-resistance makes it a very desirable metal for aircraft; indeed, fluctuations in its price have been cited as potential future cost issues for the F-35 Joint Strike fighter program and especially the F-22 Raptor. Even ultra-lightweight howitzers like the M777 use it. Back in October 2005, DID noted that Boeing was moving to secure access to titanium stock.

Now a fight is brewing over a congressional clause enacted in 1973, which says that all "specialty metals" used in US defense purchases must be refined in the USA. On one side, we have the USA's three titanium companies (RTI International, Titanium Metals Corp. and Allegheny Technologies), plus congressmen like Rep. Duncan Hunter [R-CA], chair of the House Armed Services Committee. On the other side is the Aerospace Industries Association, backed in all probability by the large aerospace manufacturers. Issues involved include dual-use military/civilian items, the realism of compliance, its effect on costs, and the Russian government's plans for its titanium industry. Read The Hill's March 16, 2003 article: "U.S. titanium industry defending its teritory."

F-22 Raptors to Japan?

F-22: Climbing Mt. Fuji?
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Via InsideDefense.com, Inside The Air Force (ITAF) reports that momentum is building within the Air Force to sell the ultra-advanced F-22A Raptor abroad to trusted U.S. allies, as a way of plussing up numbers and production. The USAF originally initially intended to purchase almost 700 F-22 fighters, but that was cut to 442, then 381, and recently cut again to just over 180. These cuts have had obvious effects on the cost per aircraft.

One of the most likely export prospects is Japan. The Japan Air Self-Defense Force (JASDF) currently has four fighter jet models in its fleet: F-15J/F-15DJ Eagles, its F-4EJ "Kai" and RF-4EJ reconnaissance Phantom IIs, the Mitsubishi F-2s (a larger, longer-range variant on the F-16C), and F-1s. The F-1 entered service in 1978 and is being replaced by F-2s; the JASDF introduced the F-4EJ in 1973, and has indicated it will begin retiring the platform some time next decade. This gives the Japanese a number of choices....

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Love on the Rocks: CASA's $600M Venezuelan Plane Sale In Heavy Turbulence

CN-235MP Persuader
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Back on January 19, 2005 , DID noted that US restrictions on resale of its technologies were blocking a EUR 500 million sale of 12 CASA aircraft to Venezuela - 10 C-295 light transport aircraft and 2 CN-235MP Maritime Patrol Aircraft. Sources were telling media outlets that the deal was dead. But DID waited. Good thing, too, because later reports revealed a possibility that Spain would go ahead and substitute non-US technology, despite the expense that would make the planes unprofitable. We could understand this for political and job-creation reasons, but we saw some US market implications for EADS and in any really involved drama, there's always another twist. This was starting to look like a real Latin American soap opera, so DID grabbed some popcorn. And waited.

Lo and behold, more twists have indeed followed. Including a side-story involving Brazil. Are we on, or are we off - and if the answer is "off," who might step into the breach? Since it's impossible to resist a rocky relationship like this one on Valentine's Day, DID decided to update our readers on this ongoing saga....

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Mile High Club: $178.2M to Set Up New USAF Flight School

DOSS Aviation Inc. in Colorado Springs, CO is being awarded a $178.2 million firm-fixed-price contract to support the USAF's Initial Flight Screening program. Actual award of a contract will be contingent upon completion of a successful national Environmental Policy Act analysis by the Air Force at the offeror's proposed training location in Pueblo, CO, before mobilization and performance begins. The contract is structured to screen between 1,200-1,700 students per year once the program is operating at full capacity. As a point of comparison, consider DID's November 25, 2005 article covering the "Canada Wings Aviation Training Centre" for Canadian and foreign students near Portage la Prairie, Manitoba.

The contract will include a six-month mobilization effort, one basic year and nine one-year options and will provide ground school and flight training for Air Force officers with follow-on assignments to undergraduate flying training courses (Specialized Undergraduate Pilot Training and Undergraduate Combat Systems Officer Training). The contractor will furnish all aircraft, aircraft maintenance, fire/crash/rescue support, labor (to include certified flight instructors), training facilities, physical and personnel security, lodging, dining, local transportation and physical fitness facilities for the students. In addition, the contractor will provide office space for a permanent-party military cadre that will oversee the students while they are in residence at the contractor's training facility. Solicitations began August 2004, negotiations were complete in October 2005, and work will be complete by September 2006. The Headquarters Air Education and Training Command at Randolph Air Force Base, TX issued the contract (FA3002-06-C-0002).

"Dude, Where's My Pandur?"

On February 3, 2006, it was reported that 15 of Belgium's Pandur armored personnel carriers were stolen, together with radio equipment and field kitchens. The equipment was meant for a Beninese battalion that is part of the UN force in the Congo. Thanks to some help from DID's Benelux reader David Vandenberghe, DID can bring you the details.

In December a ship under the flag of Saint Kitts & Nevis (VRT's report was incorrect) left the Belgian port of Zeebrugge for Congo, chartered by Geodis under the auspices of the UN. The cargo ship never made it to its destination. Four weeks ago the ship was seized in a port in Equatorial Guinea....

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QinetiQ Announces Intended IPO (updated)

QinetiQ is a major UK defense research organization whose owners include the British government and The Carlyle Group. DID has covered a number of projects in which QinetiQ has been involved. In line with the UK's 1998 Strategic Review that pressed for the movement of defense research to the private sector, QinetiQ announced on January 12, 2006 that it is headed for an IPO. Each of the current owners will sell a part of their holding in connection with the Global Offer, which is expected to raise gross primary proceeds of about GBP 150 million, plus significant secondary proceeds from the sales by the MOD and the Carlyle shareholders. It is currently anticipated that the Global Offer will be priced in February 2006.

Defense-Aerospace.com has a page with a number of releases related to the QinetiQ IPO. There is also an official UK Ministry of Defence statement, albeit in Macromedia Flash format for what appear to be legal reasons.

Defense Tech has been keeping track of events, and has a quick roundup re: the "lively" current situation. Apparently, small investors are not happy about their exclusion, investigations are launched, and conflict of interest allegations are flying. All will surely be well, however, as long as they press the green button in the Aston-Martin, left of the ash tray and martini holder that doubles as a spectroscope....

(Originally posted January 17, 2006. This post will not self-destruct, and if it should become public DID will cheerfully admit to knowledge of it.)

US Tech-Transfer Laws Freeze Spain-Venezuela Aircraft Deal

CN-235 & larger C-295
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Recently, DID articles have reported on the USA's move to block a proposed $100 million Israeli update of Venezuela's American-bought F-16s, and also on a $2 billion Spanish sale to Venezuela of 12 C-295/C-235MP aircraft and 8 small naval vessels. This follows a Forecast International report that spotlighted Venezuela as the top Latin American arms buyer over the next decade.

At the time of CASA and Navantia's EUR 1.7 billion deal, DID noted that "technology transfer restrictions - and their accompanying restrictions - may play a role in this sale as well." This has proven to be exactly the case.

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USA Sanctions 9 Firms Under Iran Nonproliferation Act

Back on March 30, 2005, DID covered the work of the US Immigration and Customs Enforcement (ICE) Arms and Strategic Technology Investigations (ASTI) division. ICE-ASTI is responsible for investigating illegal exports of military products and sensitive technologies. ICE are not alone, however, nor are they the only lever available to the USA.

On December 27, 2005, the US State Department declared that it was imposing sanctions on 9 companies (6 in China, 2 in India, and 1 in Austria) on the basis of credible information that the companies had transferred equipment or technology in violation of the Iran Nonproliferation Act (Public Law 106-178). A citation means that companies have sold materials to Iran that are included in international export control lists, or can be used in the production of missiles and weapons of mass destruction (WMD). The sanctioned firms are:

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