Saudi Arabia has completed a new $1.3 billion artillery deal after the State Department approved the purchase of 155mm M109A5/A6 Medium Self-Propelled Howitzer structures to be converted to the updated M109A6 Paladin Howitzer systems.

The Defense Security Cooperation Agency (DSCA) notified Congress of the foreign military sale on April 5.

The Saudi government purchased 180 M109A5/A6 structures that will be converted to 177 155mm M109A6 Paladin Medium Self-Propelled Howitzer systems.

“This sale will increase the Royal Saudi Land Force’s (RSLF) interoperability with U.S. forces and conveys U.S. commitment to Saudi Arabia’s security and armed forces modernization,” the DSCA said in a statement.  “The RSLF currently has M109A2, A3 and A5 howitzers in its inventory. These additional modernized howitzers will enhance Saudi Arabia’s ability to support its deployed forces and defend its borders.”

Under the deal, Saudi Arabia would also receive three Fire Support Combined Arms Tactical Trainers static training devices, 180 M2-HB .50 caliber machine guns and eight Advanced Field Artillery Tactical Data Systems.

The prime contractor was not determined at the time of the deal, according to DSCA officials.

The State Department has approved a possible $2.5 billion deal with Germany for Northrop Grumman’s [NOC] MQ-4C Triton unmanned aircraft systems (UAS).

The Defense Security Cooperation Agency notified Congress of the potential foreign military sale on April 4.

Germany has requested to purchased four MQ-4C Triton UAS, which will be modified versions of the Navy’s Triton configuration.

“The proposed sale of the MQ-4C Triton will close a crucial capability gap and will enhance bilateral and NATO interoperability and will help ensure that Germany is able to continue to monitor and deter regional threats,” the DSCA said in the statement.

Under the deal, Germany would also receive one mission control station with a main operating base and forward operating base, as well as 10 Kearfott Inertial Navigation System/Global Position Systems.

“Germany is one of the major political and economic powers in Europe and NATO and a key partner of the United States in ensuring global peace and stability. The proposed sale of the MQ-4C Triton will support legitimate national security requirements and significantly enhance Germany’s intelligence, surveillance, and reconnaissance (ISR) capabilities and the overall collective security of the European Union and NATO,” DSCA officials said in a statement.

The State Department has approved a possible $2.9 billion deal with Slovakia for 14 F-16 Block 70/72 V aircraft, missiles and mission systems.

The Defense Security Cooperation Agency notified Congress of the potential Foreign Military Sale (FMS) on April 3.

Along with the aircraft, the FMS includes 16  F-16 F110 General Electric [GE] or F100 Pratt & Whitney [UTX] engines, 16 APG-83 Active Electronically Scanned Array Radars, 14 Modular Mission Computers and embedded GPS and secure communication systems.

“Slovakia intends for these aircraft to replace its current fleet of MiG-29s. Slovakia’s current fighters are not interoperable with U.S forces or regional allies. Purchase of the F-16V will provide Slovakia with fourth generation fighter aircraft capability that is interoperable with the United States and NATO,” the DSCA said in a statement.

Under the deal, Slovakia would also receive 30 AIM-120C7 air-to-air missiles,100 AIM-9X air-to­ air missiles, 12 AIM-9X Captive Air Training Missiles and additional guidance units.

Slovakia has also requested 14 Joint Helmet Mounted Cueing System II, 14 AN/ALQ-213 electronic warfare management systems, 16 AN/ALQ-211 Advanced Integrated Defensive EW Suites and 16 AN/ALE-47 Countermeasure Dispensers.

“The proposed sale will support Slovakia’s needs for its own self-defense and support NATO defense goals. Slovakia intends to use these F-16s to modernize its Air Force and strengthen its homeland defense,” the DSCA said in a statement.

Lockheed Martin [LMT] is the prime contractor for the deal.

AM General, the automotive manufacturer best known for building the Humvee multipurpose vehicle for the U.S. military, is finding tremendous success overseas, a key ingredient to its competitiveness, Andy Hove, the company’s president and CEO, said on April 4.

Hove said AM General has the largest installed base of military vehicles globally, with more than 260,000 in service with over 70 countries. In 2017, 80 percent of the company’s military vehicle production was for international customers, he said as part of a panel discussion at the Atlantic Council that focused on defense contracting strengths and challenges for mid-size companies.

AM General in Indiana also produces a luxury sports utility vehicle for German automotive manufacture Mercedes-Benz that is exported exclusively to China.

Competing globally is “key to our survival,” Hove said. “As a big-small company that doesn’t have the protections of small businesses and it doesn’t have the scale and the heft of the large businesses, you have to compete in the market a very different way and you have to access the global market to be competitive and have longevity.”

Despite losing out on a Defense Department competition a few years ago for the replacement to the Humvee, which is officially called the High Mobility Multipurpose Wheeled Vehicle, production continues to hum along. Last summer, AM General won a $2.2 billion order through the U.S. Foreign Military Sales program to sell thousands of Humvees to multiple international customers.

“And despite rumors to the contrary, we are actually still in production on the Humvee,” Hove said. “In fact, we produced more military vehicles last year than any military vehicle manufacturer in the world.”

During the question and answer portion of the event, the panelists were asked if they were worried about a “backlash” from President Trump if they pushed back against his recent tariff announcements. Hove replied that he isn’t, but said there needs to be a balance between global and national interests in trade.

“There clearly has to be a balance between the recognized fact that we live in a global world, we operate in a global economy,” he said. “But, if we cannot produce steel in the United States, that’s a national security problem. It just is.” He added that without steel, aluminum and machine tools, “you don’t have a defense industry.”

Barbara Humpton, the president and CEO of Siemens Government Technologies, Inc., which is the U.S.-based federal business of Germany’s industrial manufacturing giant Siemens, responded that “at Siemens, we are all about global trade.”

Spain has purchased 17 Boeing’s [BA] CH-47F cargo helicopters with modifications for $1.3 billion, according to a State Department notice.

The Defense Security Cooperation Agency notified Congress of the potential foreign military sale on April 4.

Modifications for the CH-47F helicopters include 21 Common Missile Warning System AN/AAR-57A(V)8, and 42 Embedded Global Positioning System Inertial Navigation System.

Under the deal, Spain also requested AN/ARC-231 multi-mode radios, AN/ARC-201D SINCGARS radios and AN/ARC-220 High Frequency (HF) radios.

“The proposed sale of the CH-47F aircraft will improve Spain’s heavy lift capability.  Spain will use this enhanced capability to strengthen its homeland defense and deter regional threats,” DSCA said in a statement.

NATO Secretary General Jens Stoltenberg plans to visit Lockheed Martin’s [LMT] F-35 Lightning II production plant in Fort Worth, Texas, on April 5 as part of a two-day visit to the United States, the Brussels-based alliance announced April 4.

While NATO did not specify a reason for the visit, many of the countries that are buying the new fighter jet are members of the transatlantic alliance. This includes Norway, for which Stoltenberg is a former prime minister.

Stoltenberg’s trip will also take him to several key military sites on April 6, including U.S. Strategic Command (STRATCOM) at Offutt Air Force Base in Nebraska, where he is expected to discuss U.S. strategic forces and international security challenges with Air Force Gen. John Hyten, STRATCOM’s commander.

Stoltenberg will also meet participants in the Euro-NATO Joint Jet Pilot Training Program at Sheppard Air Force Base in Texas. The program produces pilot for NATO air forces.

The secretary general will also visit the North American Aerospace Defense Command (NORAD) and U.S. Northern Command (NORTHCOM) at Peterson Air Force Base in Colorado. He will be joined there by Harjit Sajjan, Canada’s defense minister.

Stoltenberg’s U.S. tour follows a two-day trip to Canada, including a visit to that country’s national defense headquarters in Ottawa.

The State Department has approved a possible $500 million deal for General Atomics Aeronautical Systems and MAG Aerospace to continue providing support services for the United Kingdom’s MQ-9 Reaper UAV program.

The Defense Security Cooperation Agency (DSCA) notified Congress of the foreign military sale (FMS) on April 4.

“The proposed sale is required to maintain the operational readiness of the United Kingdom’s MQ-9 Reaper program and enable the United Kingdom to continue to operate its fleet of MQ-9 Reapers in support of coalition operations,” the DSCA said in a statement.

The U.K. has requested continued logistics and manpower support, maintenance, minor upgrades, software services and repair parts from the two contractors.

Canada has agreed to a new $313 million contract amendment with Boeing [BA] to continue providing full systems logistics and engineering support for its Air Force’s fleet of CH-147F Chinook helicopters.

The fixed-price amendment, announced April 3, has been added to an existing 20-year performance-based logistics (PBL) contract between the Royal Canadian Air Force (RCAF) and Boeing originally signed in 2013.

Under the deal, the RCAF reviews its requirements for its 15 CH-147F Chinooks every five years. 

“We look forward to continuing our support of the Royal Canadian Air Force and its effort to reduce maintenance costs through this long-term agreement. PBLs have a proven track record of increasing system availability, decreasing maintenance cycles through the use of predictive maintenance tools, and reducing overall ownership costs,” Turbo Sjogren, a Boeing Global Services vice president, said in a statement.

Boeing will also continue providing supply chain support and data analytics for the Chinooks.

The State Department has approved a possible $148 million deal with Australia for explosive howitzer ammunition.

The Defense Security Cooperation Agency (DSCA) notified Congress of the potential foreign military sale on April 4.

Australia has requested to purchase 2,504 rounds of Insensitive Munitions Explosive (IMX)-101 ammunition, which are to be used on M795 howitzer munition projectiles. BAE Systems makes the IMX-101 ammunition.

“The proposed sale of 155mm howitzer ammunition will improve Australia’s capability to meet out-year Operational Readiness Training requirements. Australia will use this capability to strengthen its homeland defense and deter regional threats,” the DSCA said in a statement.

Under the deal, Australia would also receive Illumination and White Phosphorus munitions, point detonating fuzes, electronic-timed fuzes and M231 and M232/M232A1 propelling charges.

There is no principal contractor for the deal at the moment and material for the FMS could be sourced from a combination of stock and procurement, according to DSCA officials.