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News Archive: November 2014

 

BY ANDREA SHALAL
WASHINGTON Wed Nov 5, 2014 6:29pm EST
(Reuters) - The U.S. government on Wednesday said it had canceled, at the request of South Korea, a preliminary contract with the U.S. unit of Britain's BAE Systems (BAES.L) to upgrade 134 F-16 fighter jets, ending a major arms deal initially valued at $1.7 billion.

The unusual move, announced by the Pentagon's Defense Security Cooperation Agency, paves the way for South Korea to pursue a similar upgrade deal with Lockheed Martin Corp (LMT.N), the warplanes' original manufacturer.

On November 5, 2014, at the request of the Government of the Republic of Korea, the U.S. Government notified BAE Systems Technology Solutions & Service of Rockville, Maryland, that it would terminate for convenience a contract with BAE for initial development and long lead production in support of the Republic of Korea KF-16 fighter aircraft upgrade.  This contract was the first of a two-phase Foreign Military Sales (FMS) procurement for the upgrade of 134 KF-16s.  The U.S. Government will work with BAE to close out the contract.

Defense News with Vago Muradian
DSCA's Strategic Plan: Vision 2020
VADM Joe Rixey, Director of the Defense Security Cooperation Agency, on the agency's future.

A link to the article is available here.

WASHINGTON, November 3, 2014 -- The Defense Security Cooperation Agency (DSCA) announced today that it is reducing the cost to its international customers of doing business through the Foreign Military Sales (FMS) program.  Effective 1 December 2014, the FMS Contract Administration Services (CAS) Surcharge Rate will decrease from 1.5 percent to 1.2 percent.