Tag Archives: DSCA

Boeing in Line for $300 Million Contract to Support NATO

By Rich Smith, The Motley Fool

Filed under:

The U.S. Defense Security Cooperation Agency notified [link opens in PDF] Congress Wednesday of a planned “foreign military sale” of logistics support, equipment, parts, and training to an international consortium of NATO allies. According to DSCA, the value of the contract, if it is permitted to proceed, could reach $300 million. Boeing would perform it.

DSCA coordinates military sales contracts between the U.S. and its allies and must get Congress’ OK on such sales before they can proceed.

The consortium in question was not detailed in DSCA‘s notification to Congress, but was said to include allies in NATO and also Sweden and Finland. This consortium is seeking support under the NATO Airlift Management Program, which maintains and operates NATO-owned C-17s in support of NATO missions.

DSCA advises that providing this support “will contribute to the foreign policy and national security objectives of the United States by improving the military capabilities of NATO and furthering weapon system standardization and interoperability with U.S. forces.”

link

The article Boeing in Line for $300 Million Contract to Support NATO originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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From: http://www.dailyfinance.com/2013/04/18/boeing-in-line-for-300-million-contract-to-support/

Congress OK Sought to Sell Boeing C-17 Globemaster to Kuwait

By Rich Smith, The Motley Fool

Filed under:

The U.S. Defense Security Cooperation Agency — the outfit responsible for coordinating military sales contracts between the U.S. and its allies, and getting Congress’ OK on such sales before they can proceed — notified Congress of no fewer than five such upcoming “foreign military sales” contracts Wednesday. The biggest of the sales involving actual arms was a proposed sale [link opens in PDF] to Kuwait of a single Boeing C-17 Globemaster III transport aircraft.

The aircraft, equipped with F117-PW-100 engines from United Technologies subsidiary Pratt & Whitney, is expected to cost approximately $371 million all-in. DSCA told Congress that in addition to securing the revenues for Boeing and UTC, selling this plane to Kuwait is a good idea because “Kuwait continues to be a key ally and strong supporter of U.S. foreign policy and national security goals in the Persian Gulf region. The proposed sale will enhance the United States foreign policy and national security objectives by increasing interoperability among the Kuwait Air Force (KAF), the United States Air Force, Gulf Cooperation Council countries, and other coalition forces.”

Additionally, noted DSCA, adding a second C-17 to Kuwait‘s Air Force “will allow the KAF to better participate in humanitarian support operations.”

link

The article Congress OK Sought to Sell Boeing C-17 Globemaster to Kuwait originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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From: http://www.dailyfinance.com/2013/04/18/congress-ok-sought-to-sell-boeing-c-17-globemaster/

DSCA Seeks Authorization to Sell Singapore $246 Million Worth of Missiles

By Rich Smith, The Motley Fool

Filed under:

In twin announcements (link opens in PDF), Defense Security Cooperation Agency says (link opens in PDF) it has notified Congress of plans to make “Foreign Military Sales” to Singapore of two batches of air-to-air missiles.

The first delivery DSCA wishes to proceed with involves 100 AIM-120C7 Advanced Medium Range Air-to-Air Missiles (AMRAAM) manufactured by Raytheon (NYS: RTN) , Honeywell (NYS: HON) , Exelis (NYS: XLS) , and Alliant TechSystems (NYS: ATK) . Factoring associated equipment, parts, training, and logistical support into the cost of the order, the AMRAAM delivery would be worth an estimated $210 million to the companies involved.

Additionally, DSCA informed Congress of a planned sale of 20 AIM 9X-2 SIDEWINDER Block II All Up Round Missiles manufactured by Raytheon — also with included equipment, parts, training, and logistical support — valued at $36 million in total.

DSCA clarified that the AMRAAM missiles would be used to arm F-15SG fighter jets for the Singaporean Air Force. The intended use of the Sidewinders was not spelled out, but they seem likely to be destined for the same purpose.

According to DSCA, “The Republic of Singapore requires these missiles to meet current and future threats of enemy aircraft.”

Justifying the sale, DSCA advised Congress that both sales “will contribute to the foreign policy and national security of the United States by increasing the ability of the Republic of Singapore to contribute to regional security … [bolstering Singapore‘s] counter-piracy and counterterrorism efforts … to stabilize a critical chokepoint where much of the world’s goods and services transit en route to and from the Asia Pacific region.”

The article DSCA Seeks Authorization to Sell Singapore $246 Million Worth of Missiles originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Raytheon Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Congressional OK Sought for F-15 Sale to South Korea

By Rich Smith, The Motley Fool

Filed under:

The Defense Security Cooperation Agency announced on Wednesday (link opens in PDF) that it has notified Congress of plans to make a “Foreign Military Sale” to South Korea of 60 Boeing F-15SE “Silent Eagle” fighter jets. The sale, which would be structured as a direct commercial sale from Boeing to the Republic of Korea, is estimated to be worth $2.4 billion once the cost of associated equipment, parts, training, and logistical support are factored in.

Justifying the sale, DSCA advised Congress that “this proposed sale will contribute to the foreign policy goals and national security objectives of the United States by meeting the legitimate security and defense needs of an ally and partner nation … [augmenting] Korea‘s operational aircraft inventory and enhance[ing] its air-to-air and air-to-ground self-defense capability, provid[ing] it with a credible defense capability to deter aggression in the region.” 

DSCA further advised that as the F-15SEs are delivered, the ROK Air Force plans to decommission the ancient F-4 Phantom fighter jets currently in its arsenal to make way for the new planes. Hence, “Korea will have no difficulty absorbing this additional equipment and support into its inventory.”

As in a similar notification that DSCA gave Congress regarding a proposed F-35 fighter jet sale to South Korea by Lockheed Martin , DSCA made clear that South Korea will not necessarily buy the F-15SEs, even if Congress approves the sale. Rather, South Korea is holding a competition to choose its next generation of fighter jets. Congressional preapproval of a sale would pave the way for Boeing’s participation in this competition.

The article Congressional OK Sought for F-15 Sale to South Korea originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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As North Korea Rattles Sabres, Congress May Sell F-35s to the South

By Rich Smith, The Motley Fool

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As the confrontation on the Korean Peninsula heats up, the Defense Security Cooperation Agency announced (link opens a PDF) on Wednesday that it has notified Congress of plans to make a “Foreign Military Sale” to South Korea of 60 new F-35A Lightning II Joint Strike Fighters manufactured by Lockheed Martin .

The fighter jets, which would be sold in the “Conventional Take Off and Landing” configuration, are valued at $10.8 billion with included equipment, parts, training, and logistical support. They would be outfitted with F-135 engines built for the fighter by United Technologies‘ Pratt & Whitney division. In addition to installed engines, nine spare engines would be included in the price of the sale.

Justifying the sale, DSCA advised Congress that “this proposed sale will contribute to the foreign policy goals and national security objectives of the United States by meeting the legitimate security and defense needs of an ally and partner nation” and that “the proposed sale of F-35s will provide the Republic of Korea (ROK) with a credible defense capability to deter aggression in the region.”

DSCA further advised that as the F-35s are delivered to South Korea, the ROK Air Force plans to decommission the ancient F-4 Phantom fighter jets currently in its arsenal to make way for the new planes.

DSCA noted in its letter than the F-35 sale is no done deal. Rather, South Korea is holding a competition to choose its next generation of fighter jets. Congressional preapproval of a sale would pave the way for Lockheed’s participation in this competition.

The article As North Korea Rattles Sabres, Congress May Sell F-35s to the South originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Qatar Orders 500 U.S. Javelin Anti-Tank Missiles

By Rich Smith, The Motley Fool

Filed under:

Last week, just before America broke for the long weekend, the Defense Security Cooperation Agency announced (link opens a PDF) that it has notified Congress of plans to make a “foreign military sale” to Qatar of 500 FGM-148 Javelin Guided Missiles. Including the cost of accessories, spare parts, training, and logistical support, the deal is estimated to be worth $122 million to the weapons’ manufacturers, Raytheon and Lockheed Martin .

Justifying the sale, DSCA advised Congress that “this proposed sale … [will] improve the security of an important partner which has been, and continues to be, a force for political stability and economic progress in the Middle East.” Importantly, DSCA argued, the sale will also “provide greater security for [Qatar‘s] critical oil and natural gas infrastructure.”

At the same time, the agency assured Congress that the sale of these missiles, designed primarily as an anti-tank weapon but also useful for attacking buildings and even low-flying helicopters, “will not alter the basic military balance in the region.”

At this time, the sale is still considered “potential” and has not yet been concluded.

The article Qatar Orders 500 U.S. Javelin Anti-Tank Missiles originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin and Raytheon. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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OSI Announces $15 Million Mideast Sale

By Rich Smith, The Motley Fool

Filed under:

OSI Systems may be on the outs with America’s Transportation Security Administration these days, but at least it’s still doing good business overseas. On Monday, the X-ray security specialist announced that it has received orders for “approximately $15 million worth of “Rapiscan Eagle high energy X-ray mobile and fixed location cargo and vehicle inspection systems.”

Saying only that the orders were placed by “a Middle East customer,” OSI kept the identity of its client secret. One hint as to who’s placing the order, however, may have come in the form of a Defense Security Cooperation Agency announcement last week, when the DSCA confirmed that it has notified Congress of an impending sale of multiple Rapiscan Eagle vehicles to Iraq.

The Iraq sale announcement included a mix of vehicles from both OSI and rival American Science and Engineering . Still, valued at $600 million, the Iraq sale’s OSI component seems much larger than the relatively small, $15 million sale announced today. On the other hand, if today’s announcement is followed in fairly short order by additional announcements to still more “Middle East customers,” the destination of today’s shipment should be easy to figure out.

OSI shares closed up 5.7% on today’s news, ending Monday trading at $60.89.

The article OSI Announces $15 Million Mideast Sale originally appeared on Fool.com.

Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Why Is Obama Selling Military Assets To An Unstable Egypt?

By D. Cox

Obama Appeaser Enemies SC Why Is Obama Selling military assets to an unstable Egypt?

Congress recently struck down an amendment to the debt ceiling extension bill to prohibit the sale of military armament to Egypt by a 79 to 19 vote. The amendment was introduced by Senator Rand Paul (R-KY) in an effort to block all current and remaining sales.

Now – follow the money. The most recent sale was for 125 M1A1 Abrams tank kits at the price of $1.3 billion, approved in August of 2011. These tanks went to Mohamed Morsi of the Muslim Brotherhood. The 24 F-16 fighter jets, approved in October of 2009, was when Hosni Mubarak was still President. For this illustration, we will focus on the tanks. Why did Paul’s block to the sale fail?

There is a bi-partisan alliance being created in Washington, but it’s not what you think. It is their alliance with each other, counting on the ignorance of Americans. They have made agreements of sorts to attack each other in order to pass the buck about what is really going on – and it’s all about the Benjamins.

The fact is we have none. It is no surprise that our nation is broke. Many have warned us, including the Joint Chiefs of Staff and the Secretary of Defense, that our “national debt poses the greatest threat to our national security.” Here’s why.

The American government is under contract to buy a certain amount of military hardware. These contracts are with companies like Lockheed Martin, Boeing, General Dynamics, and others. These are multi-year agreements that cannot be broken. I’ll use tanks to highlight the current dilemma with Egypt.

In the 2012 defense appropriations bill, Congress provided an additional $255 million to the Army to buy 42 more tanks that the Army did not need. The money was intended to keep the General Dynamics Land Systems’ production line open in Lima, Ohio.

According to Secretary of the Army, John McHugh, this is still 28 tanks shy of what is need to keep the plant open. It would cost the Army up to $800 million to close and later reopen the plant, which would be less than the $3 billion to keep it open during the same time. The solution – continue to sell the difference.

This is not new. In the past, the way we made up the deficit was to sell them to our allies. It was a win-win. We already have a mutual aid treaty with them by our common membership in NATO; so if they are more armed, it was in our national interest. Plus it gave us the ability to continue to purchase enough military hardware to keep the defense sector thriving.

Here’s the problem: Egypt is not an Ally. They are a mutual partner with whom we have had a good relationship since the Israeli-Egyptian Peace Accord of 1979. We have been selling tanks to Egypt for so long, we now co-op build the Abrams tanks – in Egypt. Specifically, we purchase them from General Dynamics who makes initial parts here, then they are shipped to Egypt for the final parts made there, and then they are assembled.

In 2011, if Congress would have not purchased the extra tanks and sold the remainder, the plant would have shut down. This would have put thousands of people in the unemployment lines during Obama’s re-election – most in Republican districts. The job losses would have looked bad for both the White House and Republicans, so the sale was approved against the recommendations of senior defense officials.

This is a money problem.

The exact thing has just happened again. Except this time, Egypt added a little pressure. The Muslim Brotherhood stated “what was acceptable before the revolution is no longer”, implying that if the US cuts aid, then they would not be so motivated to abide by the peace accord.

Enter now the deal with the devil. Congress caved. Some things cannot be undone – and this is one of them. This may sound like the possibility of a perfect storm. But when we as a Nation begin to negotiate aid with a foreign power via a threat of war, I see it more as an inevitable super-storm.

We have been paying off our enemies for decades, and we are now out of money. Our nation is almost bankrupt; and similar to our own family finances when we do not have enough money, payday advances and bad credit become a very real solution – and a very poor decision made out of financial duress.

Our nation is currently in the same predicament. Our poor defense decisions are only compounding the problem of national security we already had with North Korea, Iran, and China. We no longer are able to stand strong because we are weak, and the world knows it.

If Congress were to have blocked the sale, how do you think the thousands of American workers would feel to be out of a job? It is inevitable; it will get worse before it gets better. The scary part is since we have been subsidizing the problem for the last 10 years, I fear the worst of it has not yet even begun.

Every time we have hit a problem, we have paid our way through it. The bailouts, the stimulus, and quantitative easing have come and gone; and the treasury is running out of ink. This was not an Egypt problem. This was not a defense problem. This is a debt problem that has become a defense problem.

Soon, I fear, it will be everyone’s problem.

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Read more about it by visiting the source links below:

DSCA 36(b) Arms Sales Notifications: http://www.dsca.osd.mil/pressreleases/36-b/36b_index.htm

Army to Congress, No New Tanks: http://www.defensenews.com/article/20120307/DEFREG02/303070011/U-S-Army-Congress-No-New-Tanks-Please

Tank sales to Egypt 2011: http://www.jpost.com/International/Article.aspx?id=228506

Debt Ceiling Suspended: http://www.nasdaq.com/article/senate-approves-bill-suspending-debt-ceiling-20130131-01687

Aid to Egypt 2012: http://www.nytimes.com/2012/03/24/world/middleeast/once-imperiled-united-states-aid-to-egypt-is-restored.html?_r=0

Security threat of high debt: http://thehill.com/homenews/administration/105301-mullen-reiterates-threat-excessive-debt-poses-to-nation#ixzz2JreUVgZg

Photo credit: terrellaftermath

Source: FULL ARTICLE at Western Journalism