Weekly Defense Industry Roundup

 
White House Official Release. Last Friday the President spoke at the Washington Navy Yard, joined by representatives from a host of veteran’ organizations, business groups and government departments to announce a host of initiatives to help with the high rate of recent veteran unemployment. There were a number of interesting pieces to the plan including the “reverse boot camp” for departing service members and others. This is the official fact sheet distributed by the White House that offers a pretty good roll up of the various efforts.

Kate Brannen, Defense News. Very good look at how Moody’s sees the future for defense manufacturers and how bigger cuts to the budget could lead to credit downgrades on many as profits fall.  A great read on how the investors see the future.

Disarray Hampers 2013 Planning

Marcus Weisgerber, Defense News. An inside look at the confusion that reigns over Pentagon budgeting efforts thanks to the recently passed debt ceiling and budget cutting deal. It has left DoD planners in a bit of a muddle as to what they should be building for future budgets. With various numbers and possibilities being floated from Capitol Hill no one knows where to start as a baseline budget. On top of that, we are again closing quickly on the next fiscal year and no budget has been passed by Congress. A continuing resolution budget for 2012 is likely to occur limiting new contracts and spending.

Army Beefs Up Humvee; More Armor, Bigger Payload

Carlo Munoz, AOL Defense. The Army has issued guidance for a major upgrade and refurbishment of the Humvee fleet to create what is being called Modernized Expanded Capacity Vehicles (MECV), which will be safer and incorporate lessons learned from 10 years of war to improve the venerable Humvee fleet.

U.S. Air Force Delays Pave Hawk Replacement

Marcus Weisberger, Defense News. The ongoing saga of the Air Force rescue helicopter replacement program continues as the service has issued an RFI for what is dubbed as the HH-60 Recap program in 2013. This means that any upgraded Pave Hawks or replacements won’t be operational until 2018 and extends the life of the already exhausted HH-60 fleet that has seen near constant deployment since 2001.

Pentagon: Cutting F-35 Would be Complicated, Costly

Megan Scully, National Journal. Pentagon leaders are warning Congress ahead of the budget battle that cutting or modifying the F-35 program at this point would not be easy and would end up costing more in the end of the program. All of the contracts have clauses governing termination and the analysis to sort it all out would be a massive undertaking. Continued cost overruns have budget hawks in a frenzy in Congress as each small incremental overrun gets played loudly and repeatedly.

Fred Wellman with General Petraeus in Iraq

Fred Wellman, President ScoutComms, brings us his weekly review of defense industry news via The Scout Report. Fred served over twenty years as an Army officer in both aviation and public affairs. You can follow Fred on Twitter @ScoutComms.

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