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Balance Is Critical To Future Force, Top Army Leaders Say By Ann Roosevelt Army Secretary John McHugh and Army Chief of Staff Gen. Ray Odierno say balance between the active Army and reserve forces is critical as the service faces an uncertain financial future and increasingly complex operating environment. McHugh said he signed a directive to create “a total force” that would “lead into resourcing and budget decisions,” as part of the effort to keep the balance between active and reserve components. “If the army experiences further decrements, naturally we’ll look at the total Army to see how best to distribute this,” McHugh said at a news conference on Monday, the first day of the three-day Association of the United States Army annual conference. Odierno said as the force structure was reduced in the first round of budget cuts more was taken from the active component. “Additional cuts will probably affect all of the components. We don’t know that. We don’t know how deep the cuts will be,” he said. Odierno pointed out that the active force is ready to deploy quickly and handle complex missions, while the reserve force takes a little longer to be ready and generally handles fewer complex missions. Commanders must always balance readiness, modernization and force struc- ture and maintain that balance over time, he said. “We need the right combination of active and reserve (components) as we go forward.” Looking into a very uncertain future, Odierno said, “What I’m focused on is having an Army that can deploy at several speeds, that can deploy in several sizes” and deploy for different missions. McHugh said, “The key to the future is our full spectrum capabilities and our capability to go anywhere and do any mission.” He also pointed out that the Army is a full partner in the Air Sea Battle con- cept, which is “more than a battle concept.” The land service has a role beyond soldiers populating various Pentagon offices where Air Force and Navy officers are examining and fleshing out the concept. Air Sea Battle also is about building relationships and partnerships with other nations and regions, something the Army © 2012 by Access Intelligence, LLC. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines of up to $100,000 for violations. 0800-1800 AUSA REGISTRATION DESK/AUSA TICKET PICKUP OPEN Convention Center East Registration 0700-0900 FIRST REGION AND EUROPEAN DEPARTMENT BREAKFAST MEETING ROOM 147 A AND B (BY INVITATION ONLY – ID BADGE REQUIRED) 0700-0830 SECOND REGION BREAKFAST MEETING Room 146 C (By invitation only – ID badge required) 0730-1000 THIRD REGION BREAKFAST MEETING Room 146 A (By invitation only – ID badge required) 0700-0830 FOURTH REGION BREAKFAST MEETING Room 146 B (By invitation only – ID badge required) 0730-1000 FIFTH REGION BREAKFAST MEETING Room 150 A (By invitation only – Id badge required) 0700-0900 SIXTH AND SEVENTH REGION BREAKFAST MEETING Room 151 B (By invitation only – ID badge required) 0700-0900 PACIFIC REGION BREAKFAST MEETING Room 151 A (By invitation only – ID badge required) 0800-0915 SENIOR EXECUTIVE SERVICE SEMINAR Congressional Hall A, Renaissance Hotel (By invitation only) 0900-1100 PRE-RETIREMENT/SURVIVOR BENEFIT PLAN BRIEFING Room 103 B Day 3 • Wednesday • October 24, 2012 Schedule Of Events continued on page 3 continued on page 6 Day 3 Defense Daily ® AUSA Special Show Coverage Visit us at AUSA booth 4205. Also check us out at www.defensedaily.com for additional show coverage.

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Page 1: AUSA Day Special Show Coverage 3 Defense Daily · “MEADS is designed to maximize the system’s ability to identify friendly aircraft,” said MEADS International Technical Director

Balance Is Critical To Future Force, Top Army Leaders Say

By Ann Roosevelt

Army Secretary John McHugh and Army Chief of Staff Gen. Ray Odierno say balance between the active Army and reserve forces is critical as the service faces an uncertain financial future and increasingly complex operating environment.

McHugh said he signed a directive to create “a total force” that would “lead into resourcing and budget decisions,” as part of the effort to keep the balance between active and reserve components.

“If the army experiences further decrements, naturally we’ll look at the total Army to see how best to distribute this,” McHugh said at a news conference on Monday, the first day of the three-day Association of the United States Army annual conference.

Odierno said as the force structure was reduced in the first round of budget cuts more was taken from the active component.

“Additional cuts will probably affect all of the components. We don’t know that. We don’t know how deep the cuts will be,” he said.

Odierno pointed out that the active force is ready to deploy quickly and handle complex missions, while the reserve force takes a little longer to be ready and generally handles fewer complex missions.

Commanders must always balance readiness, modernization and force struc-ture and maintain that balance over time, he said. “We need the right combination of active and reserve (components) as we go forward.”

Looking into a very uncertain future, Odierno said, “What I’m focused on is having an Army that can deploy at several speeds, that can deploy in several sizes” and deploy for different missions.

McHugh said, “The key to the future is our full spectrum capabilities and our capability to go anywhere and do any mission.”

He also pointed out that the Army is a full partner in the Air Sea Battle con-cept, which is “more than a battle concept.” The land service has a role beyond soldiers populating various Pentagon offices where Air Force and Navy officers are examining and fleshing out the concept. Air Sea Battle also is about building relationships and partnerships with other nations and regions, something the Army

© 2012 by Access Intelligence, LLC. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines of up to $100,000 for violations.

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Day 3 • Wednesday • October 24, 2012

Schedule Of Events

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Day

3Defense Daily®

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Coverage

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Forged from more than 500 years of innovative heritage, a new Alliance brings our warfi ghters the most advanced and integrated weapon systems and services.Beretta Defense Technologies— Your First Line of Defense.

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October 24, 2012 Defense Daily 3

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has long been doing around the world.Responding to several questions about sequestration, both leaders said they don’t know the ramifications of

such across the board cuts. However, the Army would have “no flexibility at all,” McHugh said. What makes it a problem is not only

cuts, but also the way it is a “salami slice” across all Army programs. The Army is, after all, a multi-billion business with contracts to honor. The concern is not the size of the cuts, but how they would be implemented.

And there is a confluence of other factors to consider, potentially the debt limit will come up again, the Bush-era tax cuts could expire and sequestration are all converging. But the impact is unknown.

McHugh added that working the financial issues is “mathematically easy.” The problem is what is the impact in fiscal year 2013 and beyond. n

SAAB North America Plans To Expand In North AmericaBy Ann Roosevelt

SAAB North America has been doing business in the United States for 50 years and is expecting to expand its North American operations, building on strong relationships with U.S. industry and the cordial relations between Sweden and the United States, officials said

“Look at the pure size of the defense market--the U.S. defense market is 50 percent of the rest of the world and you see the sheer volume of opportunity here,” said Wes Walters, executive vice president, Sales and Marketing for Saab North America. “We have to be here.”

“We have some competitive products and our plan is to grow in the U.S…as the company has a very small presence here…through acquisition and organic growth,” he said in an interview with Defense Daily.

In business since 1937, Sweden’s Saab AB has operations in more than 100 countries, with about 13,000 employees--more than 800 in the United States--and annual sales of $4 billion, John Belanger, vice president of corporate communications for Saab North America, said. In the United States in 2011, sales were about $270 mil-lion. This year, the company will probably be close to $500 million in order intake.

Walters said Saab North America has seven offices in the United States and two in Canada. In the United States, sites include Saab Training USA LLC in Orlando, Fla., co-located with its largest customer, the Program Executive Office for Simulation, Training and Instrumentation. “We have a very robust product line, which is in the U.S. inventory.”

Another example is a manufacturing plant in Lillington, N. C., Saab Barracuda. The facility makes all the camouflage for the U.S. Army and Marines, and at the height of recent conflicts was producing 10,000 systems per month.

Considering growth, Saab North America recently acquired SENSIS, in Syracuse, N.Y., and other locations. “Our radar was selected for (Littoral Combat Ship) LCS,” he said. They also have land radars used in Iraq.

The company is heavily involved in land and naval systems, with perhaps the least impact on the air side, Walters said. However, the company is a major supplier to Boeing [BA] on the Dreamliner.

The company looks at niche areas, such as shoulder-fired weapons. Saab built 600,000 of them in the early 1980s. One, the Carl-Gustaf, is going strong, and is in use by special operations forces, Navy SEALS, Marines, and Army Special Forces. In late September, Saab signed a $31 million contract with the Army to supply the weapons, responding to an urgent need from Afghanistan (Defense Daily, Sept. 27).

“We don’t stop developing, about 20 percent of our sales go back to internal R&D,” Walters said. “We have a large number of products developed and sitting on the shelf that with very little tweaking” can be used as a solu-tion. If a government doesn’t have a lot of money to invest, it can use an 80 percent solution and start operating right away.

The next generation Carl-Gustaf is already in process, expecting to be seven pounds lighter and using next-generation munitions.

“What we see as an advantage for us is that we’re not greatly invested in R&D in the U.S. market. We have products already developed,” Belanger said. “We’re small fish in the big sea over here. If we get a small percentage of business in the market,” it’s a large piece of business because the market is so large.

Parent company SAAB AB two years ago decided “to go all in,” and go for market expansion, Belanger said.

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4 Defense Daily October 24, 2012

For example, Saab North America “set a goal to do more than $1 billion in revenue by the end of 2016,” he said. “Looking at the progression, we’re well on the way to meeting that goal, combining organic growth as well as strategic acquisitions.”

Walters noted the company teams with prime contractors, finding niche areas and areas where technology can help with what primes offer. He doesn’t see Saab as a competitor to those large defense companies, but as a techni-cal partner.

Meanwhile, “there’s a sea change for the group in the way it does business,” Belanger said.Saab AB is moving to a more market-based organic structure, he said. Last year, a successful experiment in

this area encouraged the CEO and Board of Directors to decide that, as of Jan. 1, there will be six market areas in the company, such as Europe, the Middle East, Asia-Pacific, and the Nordic area.

This is really an evolution, he said. Companies need to be where the customers are to do business, with a local presence and an ability to transfer technology. U.K.-based BAE Systems did something similar not long ago, he added.

“We’re here. We have been here and our plan is to stay and grow here as an America company,” Walters said. Insiders know who we are, but the majority of people think we’re a car manufacturer. “We do not produce cars.” n

MEADS Friend Or Foe ID System Completes Certification Testing

By Ann Roosevelt

The Medium Extended Air Defense System (MEADS), a tri-national effort by the United States, Germany and Italy, has successfully completed certification testing for its advanced Mode 5 Identification Friend or Foe (IFF) system at Pratica di Mare AGB, Italy.

“MEADS is designed to maximize the system’s ability to identify friendly aircraft,” said MEADS International Technical Director Marco Riccetti. “The MEADS IFF subsystem was selected for both radars in order to provide a robust IFF system. They provide the highest level of fratricide prevention available to protect allied pilots.”

All IFF scenarios were tested in collaboration with the U.S. Air Force Traffic Control Radar Beacon System Identification Friend or Foe Mark XII/XIIA System (AUIMS) Program Office.

The MEADS IFF system completed 160 tests during certi-fication testing.

Additional tests were also conducted with the Italian National Security Agency after the IFF was integrated into a MEADS Multifunction Fire Control Radar.

The IFF system is incor-porated into both MEADS 360-degree radar configura-tions and uses a cryptographic computer developed by Italy’s SELEX Sistemi Integrati. MEADS became the first non-U.S. cryptographic system cleared for U.S. use.

The MEADS system is preparing for its first flight

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intercept test at White Sands Missile Range, N.M.“For the upcoming test, we’re seeing progress on the radar front,” Marty

Coyne MEADS International director of business development, told Defense Daily. “For example, the MEADS surveillance radar has successfully handed targets over to the multifunction fire control radar in initial tests. Our test team at White Sands Missile Range is now working with the German air force to track target aircraft with the MFCR. It’s an exciting time for the MEADS program.”

The intercept flight test would be the culmination of the system design and development (SDD) phase of the program. None of the three nations plan to procure systems at this point, but each wants to harvest what has been developed.

The MEADS system offers coverage and flexibility that other systems cannot provide including complete 360-degree defense that protects military sites and civilians against next-generation threats, said Gregory Kee, NATO MEADS Management Agency general manager. “Its advanced solid state architecture is more reliable than fielded systems, yet with the same number of batteries MEADS can provide eight times the coverage. Reductions in person-nel and maintenance can save billions of dollars in operating costs.”

MEADS International is the prime contractor for the MEADS sys-tem, with joint venture partners MBDA in Italy and Germany and Lockheed Martin [LMT] in the United States. n

Romney, Obama Debate Defense Budget, Navy Shipbuilding

Emelie Rutherford

President Barack Obama and Republican challenger Mitt Romney bat-tled over Pentagon spending and Navy shipbuilding last night during the final presidential debate before the Nov. 6 election.

Obama mocked Romney, the former governor of Massachusetts, for emphasizing the naval fleet is smaller now than in 1917. Romney wants to increase weapons spending, notably calling for boosting Navy shipbuilding from nine to 15 ships per year--including increasing annual submarine pro-duction from two to three vessels.

Romney noted that the Navy in recent years has had a goal of boosting its fleet to 313 vessels, but now has 285 ships and could have fewer if so-called sequestration budget cuts to defense spending kick in in next year.

“That’s unacceptable to me,” Romney said at the event at Lynn University in Boca Raton, Fla. “I want to make sure that we have the ships that are required by our Navy,” he said, also lamenting that the Air Force is “older and smaller” than any time since its founding.

Romney and Obama both reiterated their opposition last night to the so-called sequestration cuts, the $1.2 trillion decade-long reduction in planned defense and non-defense spending that will start next January unless Congress and the White House can agree on an alternate plan. Romney has gone fur-ther and pledged to fight “$1 trillion” in defense cuts--the $500 billion from sequestration combined with $487 billion in decade-long reductions Obama supports and the Pentagon has budgeted.

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“This in my view is the highest responsibility of the president of the United States, which is to maintain the safety of the American people, and I will not cut our military budget by $1 trillion,” Romney said. “That in my view is making our future less certain and less secure.”

Obama shot back that Romney “maybe hasn’t spent enough time looking at how our military works.”“You mentioned the Navy, for example, and that we have fewer ships than we did in 1916,” Obama said.

“Well, Governor, we also have fewer horses and bayonets, because the nature of our military’s changed. We have these things called aircraft carriers where planes land on them. We have these ships that go underwater, nuclear submarines.”

Obama said he and Pentagon leaders do not play “a game of Battleship where we’re counting ships.”Romney has called for maintaining defense spending at 4 percent of the gross domestic product (GDP), leav-

ing Obama supporters to question where he would find what they say is an additional $2 trillion needed to sus-tain that level of funding in future years. Romney told debate moderator Bob Schieffer, the CBS News journalist, that he would pay for more military spending by balancing the federal budget through steps including eliminating Obama's health care program and reforming Medicaid.

Obama charged Romney’s federal budget proposal would not work, arguing his own spending plans would properly fund the military and also reduce the federal deficit.

The deficit, Obama said, “is a significant national-security concern, because we’ve got to make sure that our economy is strong at home, so that we can project military power overseas.”

Last night’s 90-minute debate was devoted to foreign policy--an issue mentioned only briefly during the two previous Obama-Romney showdowns. The candidates’ supporters were busy yesterday touting their military policy and budgeting stances.

Obama backer Lawrence Korb told reporters yesterday he sees Romney’s 4 percent of GDP goal as “irrel-evant.”

That’s “because you’ve got to look at what you strategy is, you’ve got to look at that the threat is,” said Korb, a fellow at the left-leaning Center for American Progress Action Fund who served in President Ronald Reagan’s Pentagon.

Romney’s campaign previously said in an October 2011 whitepaper that he wanted to maintain a floor of 4 percent of GDP spending on “funds devoted to the fundamental military components of personnel, operations and maintenance, procurement, and research and development.” Yet, since then, some of his supporters have portrayed the 4 percent level as more of a rough goal, while others have described it as a target to be hit in future years.

Travis Sharp, a fellow the Center for a New American Security, calculated Romney’s proposal to maintain that defense spending at 4 percent of GDP would cost at least $2 trillion more over the next decade than would Obama’s defense-spending proposal.

Romney supporters took issue with Obama’s regular assertion that Romney wants $2 trillion in additional defense spending that the military didn’t request.

The pro-Romney Defending Defense Project--a joint effort of the Foreign Policy Initiative, American Enterprise Institute, and Heritage Foundation--criticized Obama yesterday for “repeatedly (attacking) Governor Romney’s plan to restore baseline military budgets to roughly 4 percent of domestic product as unnecessary spend-ing that the Joint Chiefs of Staff don’t want.”

Defending Defense pointed in a statement to Obama’s call during a speech early last year to cut $400 bil-lion in defense spending, highlighting that former Defense Secretary Robert Gates said he was not told in advance about those cuts.

Defending Defense quotes Gates as saying that suggestions “to cut defense by this or that large number have largely become exercises in simple math, divorced from serious considerations of capabilities, risk, and the level of resources needed to protect this country's security and vital interests around the world.”

The group of conservative think tanks argues that Obama “has, conveniently, rewritten the standard of mili-tary strategy to conform to his defense-budget-cutting desires.”

Romney and his running mate Rep. Paul Ryan (R-Wis.), a congressman who chairs the House Budget Committee, have blamed Obama for the across-the-board sequestration budget cuts, which were created by the Budget Control Act of 2011. Journalist Bob Woodward says in a new book that the idea for the sequester--a pack-age of politically unpopular cuts put in the law to try to compel Congress to agree on an alternate plan--came from

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the White House.The Obama administration is opposed to sequestration, but also has threatened to veto legislation that tinkers

with it without offering a viable alternate proposal to cut $1.2 trillion in federal spending. The president has called on congressional Democratic and Republican lawmakers to agree on a new wide-reaching plan that includes both spending cuts and new revenues.

Obama said last night that sequestration was proposed by Congress, not him. He predicted: “It will not happen.” n

DARPA Chief To Russia: 'It's Not That Easy'Mike McCarthy

The head of the Pentagon’s agency for developing cutting edge ideas and turning them into real weapons tech-nology cautioned Monday that Russia’s endeavor to establish a similar organization won’t be easy.

The Russian Duma, controlled by President Vladimir Putin’s United Russia party, voted overwhelmingly last summer to set up and fund a new agency modeled after the Defense Advanced Research Projects Agency (DARPA), calling it the Future Research Fund (FPI).

DARPA chief Arati Prabhakar predicted it will take quite a bit of time for the FPI to develop the unique qualities required to push the limits of technology and create the risk-taking culture that must accompany it.

“I would say it’s not that easy to do, and the reason is that our ability to take big steps and to take the risk that is necessary to reach for significant impact--that’s not something that happens overnight,” she said.

“It’s something that happens as you build an organization and you establish a set of relationships and you establish fundamentally a culture that allows a group of great program managers to step out and really take on those kinds of dramatic challenges,” she added.

Effectively running an organization like DARPA relies on a recruiting strategy to attract the best talent, enabling risk taking, keeping bureaucracy out of the way, and then finding ways to put the newest technology to use even if it threatens previously established business models people are reluctant to let go of, Prabhakar said.

“Those are things that take a long time to develop,” she said at an Office of Naval Research conference hosted by the American Society of Naval Engineers.

The FPI could be operating within months and could receive up to as much as $100 billion in funding through 2020, Russia Today, a state-funded television station, reported.

Russian Deputy Prime Minister Dmitry Rogozin was quoted by RT before the July vote as saying that after 20 years of stagnation Moscow won’t be able to catch up the West through traditional weapons development pro-grams and needs an agency to take the necessary risks. He said FPI’s initial focus will be on automating systems and hypersonic technologies.

DARPA has been around since 1958 and, among many other things, is credited for the development stealth and the Global Positioning System (GPS) technologies. It also played a role in the creation of the internet by pur-suing the idea of linking time-sharing computers into a national system, according to its website. n

Northrop Grumman Unveils GMV 1.1 Entry MAV-L At AUSAPat Host

Northrop Grumman [NOC] unveiled its entry Monday for U.S. Special Operations Command’s (SOCOM) Ground Mobility Vehicle 1.1 competition at the Association of the United States Army trade show here.

The bid, the Medium Assault Vehicle-Light (MAV-L), is developed by Northrop Grumman, Britain’s BAE Systems and Pratt & Miller Engineering. BAE is a leader in vehicle design, manufacturing and through-life support of military-wheeled vehicles and associated systems, according to Northrop Grumman statement. Pratt & Miller Engineering provides clients with innovative, high-performing engineering and manufacturing solutions in fields such as defense, automotive, motorsports and powersports.

“Pratt & Miller has a proven, low-risk manufacturing plan through the utilization of the BAE Systems’ Sealy,

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Texas, plant, which has produced tens of thousands of high-quality tactical vehicles,” Frank Sturek, Northrop Grumman deputy director of land forces sustainment and MAV-L program manager, said yesterday.

The GMV 1.1 competition is to replace the current SOCOM-specific land vehicles based on the Humvee. The command is interested in a more agile vehicle that offers more protection, armaments and C4ISR and com-munications capability. SOCOM’s GMV 1.1 program includes plans to acquire up to 1,300 vehicles for SOCOM missions with requirements for air transportability, weapons capabilities and high mobility (Defense Daily, June 18).

The MAV-L is modular, transports up to seven operators and is air transportable in a MH/CH-47 Chinook helicopter, which is developed by Boeing [BA]. The vehicle is built specifically for SOCOM forces and is designed to function worldwide on any battlefield, according to a company statement. Sturek said MAV-L also fits inside a CH-53 helicopter. The CH-53 is developed by Sikorsky, a division of United Technologies Corp. [UTX].

“I think you’ll see this solution meets all their requirements: Mission, technical, affordability, production, demands in terms of schedule, and of course, all the operational support requirements,” Tom Vice, Northrop Grumman corporate vice president for technical services, said yesterday in remarks.

“What this vehicle allows you to do is not travel on the roads,” Sturek said. “With an 18 to 22 inch suspension travel, you don’t have to stay restricted to roads or even trails. You can still move at a fairly good clip.”

Sturek said two weeks ago in testing at Camp Grayling Air and National Guard Training Center, Mich., he had MAV-L reach 67 miles per hour on a “regular, two-thin trail” and “over 30 miles per hour” off-road. Sturek said the objective standard off-road is 22 mph. Sturek also said there is an “Arctic kit,” which allows the vehicle to be started in temperatures below 30 degrees Fahrenheit.

Sturek said the Defense Department could issue an award as early as December or January. Sturek also said France and a Middle Eastern nation have expressed interest in MAL-V. Sturek said

Incumbent AM General, General Dynamics [GD] and a Navistar- [NAV] Indigen Armor-SAIC [SAI] team have also submitted proposals for GMV 1.1. n

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Raytheon Bolsters Cyber Security Capability With Acquisition

Raytheon [RTN] on Monday said it has acquired the small technology development and services company Teligy, Inc., giving it additional capabilities and offerings in the cyber security space.

Raytheon also said the acquisition is the 11th it has made in the area of cyber since 2007. Terms of the deal were not disclosed.

The acquisition of South Carolina-based Teligy extends Raytheon’s cyber security offerings in wireless com-munications, vulnerability analysis, reverse engineering and custom kernel software and device driver development, Raytheon said. These are areas that are priorities of intelligence, defense and commercial customers globally, it added.

“The Teligy acquisition adds critical wireless capabilities that address the needs of our cyber security cus-tomers in the intelligence, DoD and federal communities," Lynn Dugle, president of Raytheon’s Intelligence and Information Systems segment, said in a statement.

Raytheon also said that with the acquisition it will be able to cover the entire communications stack for wired and RF technologies and also gives the company access to emerging markets. Raytheon also said that Teligy has strength in transitioning prototype and proof-of-concept cyber products into deployable solutions.

The deal will not materially impact Raytheon’s sales or earnings in the fourth quarter of 2012 or in 2013.Teligy’s co-founders will remain with the company. n

Icahn Makes Appeal To Oshkosh Shareholders In Takeover BattleCalvin Biesecker

Activist investor Carl Icahn on Monday asked his fellow shareholders in truck maker Oshkosh Corp. [OSK] to either tender their shares to him or vote to replace directors on the company’s board with his forthcoming nomi-nees to point the company in a new direction more friendly to shareholders.

Icahn last week launched his tender offer of Oshkosh’s stock at $32.50 per share (Defense Daily, Oct. 18). The tender offer, valued at $3 billion, is good for 45 days, although Icahn said he would extend it depending on the response from shareholders. He is the company’s largest shareholder and owns nearly 10 percent of Oshkosh’s stock.

In his letter to shareholders, Icahn said that when Oshkosh’s current chief, Charlie Szews, took over the com-pany five years ago, its stock was trading at nearly $62 per share. For the one-year period leading up to the tender offer, the company’s stock traded at an average of $21.15, Icahn said.

Part of the new direction Icahn wants to take Oshkosh includes spinning off Oshkosh’s JLG unit that makes access equipment for the construction, industrial and other industries. While Icahn won’t announce his candidates for Oshkosh’s board until later this week, one of his planned nominees is William Lasky, the former chairman and CEO of JLG until its sale to Oshkosh in 2006.

“We are now offering a clear choice that we view as a win-win for shareholders,” Icahn wrote. “Shareholders can win by selling their shares to us in our tender offer for $32.50. Or, shareholders can win by voting four our slate of directors in our proxy fight to replace the existing board, and implementing a shareholder friendly business strategy, the cornerstone of which is the spinoff of JLG.”

Oshkosh said yesterday that it will advise shareholders of its position on Icahn’s unsolicited offer by the end of October. n

Defense Daily (ISSN 0889-0404) is published each business day by Access Intelligence, LLC. • Managing Editor: John Robinson, [email protected] • Army/Missile Defense/International: Ann Roosevelt, [email protected] • Defense Business/Cyber Security/Homeland Security, TR2 Editor: Calvin Biesecker, [email protected] • Congressional Reporter: Emelie Rutherford, [email protected] • Navy/OA Reporter: Mike McCarthy, [email protected] • Air Force/Missile Defense/IT Reporter: Patrick Host, [email protected] • General Assignment: Phil Bednarczyk • Editor Emeritus: Norman Baker • Director, Marketing Production: Tracey Lilly • Director of Marketing: Erica Lengermann, [email protected] • Manager, Business Development: Amy Russell, [email protected] • Sales Representative: Daniel Chase, [email protected] • Publisher: Jennifer Green-Holmes, [email protected] • SVP: Joe Rosone • Divisional President: Heather Farley • SVP Information Technology: Rob Paciorek • President & CEO: Don Pazour

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MBDA Markets Dual Mode Brimstone For Army's JAGM ProgramPat Host

European multi-nation conglomerate MBDA believes the applicability of its Dual Mode Brimstone air-to-ground precision attack weapon and its uniquely-integrated millimeter wave seeker makes it a top contender in the Army’s Joint Air to Ground Missile (JAGM) program.

MBDA spokesman Doug Denneny told Defense Daily on Monday at the Association of the United States Army trade show here the Dual Mode Brimstone can be deployed from anything that currently employs a Hellfire missile because it is relatively the same shape and size as Hellfire and can work off the same M299 launcher.

“You never say integration is easy, because that’s a hard thing to say,” Denneny said. “But it’s relatively easy.”Denneny said Boeing’s [BA] AH-64 Apache helicopter and AH-64D Apache Longbow helicopter and MD

Helicopter’s MH-6 Little Bird could deploy Dual Mode Brimstone. Denneny also said Dual Mode Brimstone could be fired from remotely piloted aircraft (RPA) and unmanned aerial vehicles (UAV). MBDA said in a release Dual Mode Brimstone is also intended for integration on the Eurofighter Typhoon aircraft and the Defense Department’s next-generation F-35 Joint Strike Fighter, which is developed by Lockheed Martin [LMT].

Denneny said the accuracy of Dual Mode Brimstone’s millimeter wave seeker head sets it apart. Denneny said the millimeter wave seeker head allows the operator to employ it just as if they are employing a semi-active laser Hellfire, except the millimeter wave seeker head hones in on the center of mass, providing increased accuracy and less waste compared to Hellfire.

“What that allows is in a high-speed moving target situation, if the laser spot comes off the target today, for instance, on a Hellfire, the missile may miss by six or seven feet and blow up in the dirt behind the target,” Denneny said. “With Dual Mode Brimstone, it locks onto the object.”

JAGM is an Army program to develop the next-generation air-to-ground missile to replace the current BGM-71 TOW anti-tank missile, AGM-114 Hellfire and the AGM-65 Maverick air-to-surface missiles. The Hellfire mis-sile is developed by Lockheed Martin.

“It’s something we’re marketing to really raise awareness and also to offer to the U.S. Army and other ser-vices a complete, in-production, known-cost opportunity, particularly now that JAGM has moved off to the side,” Denneny said.

Denneny said Dual Mode Brimstone is battle tested, having been fired over 200 times by the United Kingdom’s Royal Air Force during its Libya campaign, including from a Tornado GR-4 aircraft. The Tornado GR-4 is devel-oped by multi-nation conglomerate Panavia Aircraft GmbH.

Denneny said Dual Mode Brimstone’s third highlight is that it is a low-damage collateral warhead.MBDA is jointly held by BAE Systems with 37.5 percent, European Aeronautic Defense and Space Co. (EADS)

with 37.5 percent and Finmeccanica with 25 percent (Defense Daily, April 17). n

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Marine Corps Moves On From EFV To Three New

Amphibious-Vehicle EffortsBy Emelie Rutherford

The Marine Corps is busy with its revamped plans for amphibious vehicles, with its major

effort to plan a new Amphibious Combat Vehicle (ACV) taking shape follow the recent completion

of a major study.Col. Keith Moore, Marine Corps program manager for advanced amphibious assault (PM

AAA), is just wrapping up the very final stages of the service’s contractual relationship with General

Dynamics [GD] for the Expeditionary Fighting Vehicle. The EFV, a tracked amphibious vehicle that

battled technical challenges earlier in its decade-long development lifespan, ultimately was canceled

last year by former Defense Secretary Robert Gates because of its cost. It was intended to be a

swimmable armored vehicle that would quickly carry combat-ready Marines to land from ships far

off shore.Now Moore is guiding three successor amphibious vehicle efforts that are at various stages: the

nascent ACV, which is intended to be a more-affordable alternative to EFV, as well as an upgraded

version of the existing Assault Amphibious Vehicle (AAV) and a new, likely off-the-shelf wheeled

Marine Personnel Carrier (MPC).It’s the ACV that is taking up the bulk of Moore’s time. Service officials have completed an

analysis of alternatives (AoA) on six types of vehicles that could be the ACV. The AoA document

was approved out of the Marine Corps and awaiting final briefings to congressional and Pentagon

officials as of this writing. After the AoA briefings are done, Moore plans to go before the Defense Acquisition Board

(DAB) later this fall for in-process review of the development path forward. Armed with a draft of

the ACV’s capabilities definition document, Moore is hoping the DAB meeting will clear the way

for releasing the first request for proposals (RFP) for the initial ACV development contracts with

Modern Day Marine Military Expo Daily

© 2012 by Access Intelligence, LLC. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines of up to $150,000 for violations.

Published By:Defense Daily® Visit us at the Modern Day Marine Expo Sept. 25 - Sept. 27 • Booth 117

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Sponsored By:

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ATK Aims At Affordable Innovation, CEO SaysBy Ann Roosevelt

Despite the current turmoil swirling around the budget, deficits, poten-

tial sequestration and force reductions, a major theme for aerospace, defense

and commercial products company ATK [ATK] continues to be to provide a

quality product at a competitive price allowing additional performance for

the customer. “We talk about affordable innovation--that’s still a big theme that I’m

pushing through the company that we still continue to offer affordable yet

innovative solutions and products to our customer,” Mark DeYoung, presi-

dent and CEO of ATK, told Defense Daily. As examples, DeYoung pointed to the Advanced

Precision Mortar Initiative (APMI), which won the Army’s

Innovations of the Year recognition in 2012. It’s an afford-

able solution to take dumb mortar capability and turn it into

a smart mortar with a precision capability.

That means a reduced number of rounds in the invento-

ry, a reduced number of shots at the target, and importantly

reduces the likelihood that civilians or infrastructure would

be damaged when it’s used.

“This is an example of an innovation at an affordable cost that has life

cycle cost benefits,” DeYoung said.Another example is the Precision Guidance Kit (PGK) for artillery. This

takes 155 millimeter artillery rounds and adds GPS to guide it to the target.

“It’s one of these affordable solutions where you don’t have to replace your

inventory, you simply make your inventory more capable,” he said.

In another area, from a strategic perspective, ATK wants to be a part-

ner. “We want to work with other companies that have capabilities, we want

to help them market, distribute and sell those capabilities,” DeYoung said.

“We want to look for partners where they have potential capabilities or com-

ponents or the ability to work with us to create a solution. We don’t have to © 2012 by Access Intelligence, LLC. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines of up to $100,000 for violations.

0700-0900Sergeant Major of the arMy ConferenCeRoom 202 A and BSPEAKER

SMA Raymond F. Chandler III Sergeant Major

of the Army0700-1900 aUSa regiStration DeSkConvention Center East and West Registration

0700-1900 aUSa tiCket PiCkUP oPenConvention Center West Registration

0730-0900 Mg robert g. MoorheaD gUarD/reServe breakfaStRoom 146 A, B and C (Ticket/ID badge

required)HOSTLTG Roger C. Schultz, Jr. United States Army,

Retired Vice Chairman for National Guard and

Reserve Affairs AUSAPresentation of Chapter AwardsSPEAKERGEN David M. RodriguezCommanding GeneralUnited States Army Forces Command

30900-1700 exhibitS oPenHalls A, B, C, D and E0900-1700 inStitUte of LanD Warfare

PUbLiCationS avaiLabLeAUSA Pavilion, Booth 407, Exhibit Hall A

0930-1115 oPening CereMonyBallroom (ID badge required)1200 Draft reSoLUtionS avaiLabLe for

PiCkUP by ChaPter DeLegateSRoom 154 B

Day 1 • Monday • October 22, 2012Schedule Of Events

▶ continued on page 3

Day

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AUSA Special Show Coverage

Visit us at AUSA booth 4205. Also check us out at www.defensedaily.com for additional show coverage.

CEO Mark DeYoung

▶ continued on page 14

BAE Developing Smaller Version of AGS

System For Arleigh Burke-Class Destroyers By Carlo Munoz

Program officials at BAE Systems are looking to shrink down the company's

naval gun system designed for the Navy’s Zumwalt-class destroyer (DDG-1000)

and install the smaller version of the weapon system on board the sea service’s

Arleigh Burke-class warships (DDG-51).

The Advanced Gun System-Lite (AGS-Lite) will trim 50 percent of the

original AGS design and maintain the same 74 nautical-mile range as its larger

counterpart on the DDG-100, while firing the same 155mm round, according to

John Perry, manager of business development for advanced systems.

A smaller magazine capacity and slower rate of fire are the only real tradeoffs

between the AGS-Lite and the larger AGS, Perry said in an April 7 briefing in

Arlington, Va. The range of fire provided by both AGS systems dwarfs the 13

nautical mile range of the legacy Mk45 deck gun on the DDG-51 ships, he said.

That 74 nautical mile range provided by the AGS-Lite system matches that

of the Tomahawk cruise missile, Perry said. At that range, the new deck gun could

provide vital ship-to-shore fire support and supplement Tomahawk strikes against

targets inland. Currently, program officials have only tested the gun’s range up to 60 nauti-

cal miles, but are well on track to hit the 74 nautical mile threshold, according to

Perry. The AGS-Lite system also features an automated loading system below

deck, which replaces the six-man team normally required to load the Mk45 gun,

according to the BAE official. While no program of record has been established for the AGS-Lite by the

Navy, Perry noted that the Navy’s stated requirements for precision fire support,

coupled with its decision to truncate the number of DDG-1000s in the fleet, vali-

dated the need for the AGS-Lite. The initial AGS was expected to be the main deck gun for the Navy’s future

fleet of Zumwalt-class destroyers. But after serious cost overruns, the sea service

opted to cut its DDG-1000 buy to three ships and fill the remainder of that

destroyer requirement with more Arleigh-Burke class boats. Visit us at the SAS Show • April 11-13 • Booth 117

© 2011 by Access Intelligence, LLC. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines of up to $100,000 for violations.

Day 1 • Monday April 11, 2011Schedule Of Events 7:30am-5:00pmAttendee RegistrationExhibit Hall Level (Hall E) 9:15amComplimentary Attendee Continental

Breakfast 9:30am-9:45amOpening Ceremony — Escalator Mezzanine 9:45am-5:00pmExposition Open — Exhibit Hall 10:00am-11:15amService Chief’s Panel: “Seapower:

International Security and America’s

Future” — Potomac Ballroom CModerator: Vice Admiral Phillip M. Bal-

isle, USN (Ret), DRS Technologies, Inc.,

Senior Vice President, Maritime Strategic

Plans and ProgramsSpeakers: Admiral Gary Roughead,

USN, Chief of Naval OperationsGeneral James F. Amos, USMC, Com-

mandant of the U.S. Marine Corps

Admiral Robert J. Papp, Jr., USCG,

Commandant of the U.S. Coast Guard

The Honorable David T. Matsuda, MARAD, Maritime Administrator

11:00am-5:00pmInternational Maritime ToursExhibit Hall 11:25am-11:55amSea-Air-Space Floor Speaker—Navy

League of the United States Booth #242

Rear Admiral Jeffrey A. Lemmons, USN,

Director for International Engagement

Maritime Energy Pavilion Floor Speaker

Maritime Energy Theater Booth #213

Mr. John P. Quinn, USN, Deputy Director,

Chief of Naval Operations, Energy and

Environmental Readiness Division▶ Continued on page 3

Defense Daily®

Day

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Page 12: AUSA Day Special Show Coverage 3 Defense Daily · “MEADS is designed to maximize the system’s ability to identify friendly aircraft,” said MEADS International Technical Director

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