Army official cites potential "large" savings associated with multiyear weapons contracts
Assistant Army Secretary Claude Bolton, who is overseeing $56 billion in procurement of weapons and services this year, said he'd like to negotiate contracts for new helicopters and Bradley fighting vehicles that lock in prices for 36 months, as opposed to the usual single-year span. Commenting on the potential savings, Bolton said, "We're talking large dollar amounts." Washington, Post, The / Reuters (10/8)
Reform of defense export licensing procedures may be within reach
Defense contractors have long chafed at the lengthy licensing process required to secure the right to export military hardware and technology. Changes in geopolitical realities may spur a greater openness for export, as the U.S. sees an advantage to arming allies in the global war on terror. "The administration has welcomed suggestions for change," said Jeremiah Gertler, vice president for defense and international affairs at the Aerospace Industries Association. "There is openness to reform," he said. Defense News (09/05)
Shift in DOD priorities could benefit small businesses
Small businesses could benefit as the Pentagon and large contractors shift gears to embrace a global war on terror that will require innovations produced quickly and inexpensively. "Affordability is becoming the No. 1 objective a DOD official said." Cost and schedule overruns are so commonplace that affordability becomes paramount." Aviation Week/Aerospace Daily & Defense Report (08/22)
India expected to become a top market for defense contractors
Military analysts expect India to spend $40 billion over the next five years on weapons procurement, making it one of the largest military markets in the world. For American contractors, success in India hinges in part on the warmth of political relations and also on building partnerships with local companies. The Russians, who have traditionally supplied India's military hardware, will be formidable competition. New York Times, The (08/31)
RFID tags could eliminate lost luggage
RFID, which stands for radio frequency identification, may one day eliminate the loss of luggage through mishandling. The idea is that a radio transponder embedded in luggage tags will communicate with airport personnel via antennas placed in baggage areas. When a bag fails to show up where and when it is expected, airport agents can ask the RFID tag where it and the lost bag have gone. Los Angeles Times (10/10)
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