BRUSSELS, Feb. 4 (UPI) -- U.K. likely to dial down defense equipment spending
Although Britain's defense budget will climb by about $15.1 billion over the next three years, expenditure on equipment will most likely fall, according to a report released by the House of Commons Defense Committee Jan. 28.
The report warned that the Ministry of Defense is too eager in its launching of tenders and should aim to be more efficient in negotiations. Escalating costs for major projects are the main disturbance in budget planning. This comes as somewhat of a surprise since the ministry is halfway through an eight-year scheme that is on target to net some $10 billion in efficiency savings.
Steyr Daimler Puch recovers lost contract
Steyr Daimler Puch has regained a multibillion-dollar defense contract with the Czech government that was initially rescinded because of schedule delays.
The contract, which was scrapped in December, is worth $1.18 billion and is for the production of 199 Pandur II light-armored vehicles. Under a new deal with the government, if negotiations are not completed by March 5, the government will reopen the bidding process for the contract.
Steyr-Daimler-Puch, an Austrian unit of U.S-based General Dynamics Corp., originally beat out Patria and Rheinmetall for the contract.
The Austrian media said if Steyr Daimler Puch loses the contract a second time it will be forced to close its plant, laying off several hundred workers.
United Arab Emirates selects Patria's AMV
The United Arab Emirates has signed a contract with Patria for the production of its fully NATO-compatible AMV 8x8, according to Patria's Web site.
The number of AMVs ordered and their price tag is not known.
Russia's weapons sales to China evaporate
Russian arms exports to traditional bulk-buyer China -- which previously bought 40 percent of Russia's weapons -- has virtually evaporated because of the Russian government's inability to decide which technology it's willing to surrender, Nezavisimaya Gazeta reported.
Other stumbling blocks appear to be Russia's distaste for selling China licenses for producing the sold technology on its own and China's concern over Russian arms sales to India.
Additionally, a recent contract between Russia and China had to be broken because of Russia's inability to deliver a transport and refueling plane because of problems with a supplier.
A high-level delegation will be dispatched to solve the problem with China before the end of Russian President Vladimir Putin's term in May, Nezavisimaya Gazeta reports.
EADS signs contract to supply German helicopters
EADS has announced the signing of an almost $60 million deal to supply the last third of the German armed forces' helicopters with its Operations Support System. It previously equipped the first two-thirds of the helicopter fleet with its system.
The deal was signed between the German Federal Office of Defense Technology and Procurement and EADS Defense & Security.
The Operations Support System serves to prepare, plan and execute missions for Germany's NH90 and Tiger helicopters. The systems that will be installed on the helicopters are both fully interoperable with NATO systems, according to the EADS Web site.
The Operations Support System combines tactical operational command and control with technical logistic support, which is a first for the UH Tiger and NH90.
