FLUG REVUE July 2004: TIPS wins NATO AGS

NATO CHOOSES TIPS

By Karl Schwarz

On one thing everyone is agreed: there is an urgent requirement for a NATO-operated Alliance Ground Surveillance (AGS) system. This was recently confirmed, amongst other people, by General Harald Kujat, Chairman of NATO's Military Committee, “Powerful reconnaissance capabilities are indispensable to the NATO Response Force.” The supplier chosen by the Conference of NATO Armaments Directors (CNAD) on 16 April was the Transatlantic Industrial Proposed Solution (TIPS) consortium.

Thus, as far as consortium members EADS, Galileo Avionica, General Dynamics Canada, Indra, Northrop Grumman and Thales are concerned, there was every reason to celebrate at the Berlin Air Show. To convert their victory over the Cooperative Transatlantic AGS System (CTAS) team led by the American company, Raytheon, into a development contract, however, strenuous efforts will be required. First of all, the question of national cost contributions has to be clarified by the NATO summit at the end of June in Istanbul so that, based on this, the work shares can be apportioned.

Some 80 companies could be involved in the TIPS programme. “That is a problem, but we have the experience to navigate through it and avoid the pitfalls of the Eurofighter programme,” says Giancarlo Grasso, President of Galileo Avionica. A legally independent TIPS company is to be set up before the end of the year.

Rapid solutions are also necessary in the area of technology transfer. “Over the last few months we have made progress on this. We now understand a lot better the kind of framework that will be needed to ensure the success of this transatlantic collaborative venture,” explained Tom Enders, CEO of EADS Defence and Security Systems. “The solution will be for Europe to contribute all the technologies which the USA is not prepared to release,” added José Massol, Senior Vice President of Thales Airborne Systems.

These detailed questions are to be clarified in the forthcoming project definition phase. “We will work out the precise structure and fleet costs in consultation with the customer so as to tailor the programme in the best possible manner to NATO's needs,” said Massol. The stated requirement is the capability to maintain 24/7 surveillance in two geographically separate operational areas for three months, something that will require hundreds of servicemen working a three-shift system.

For this task TIPS has proposed a mixed fleet comprising five Airbus A321-200's, seven Global Hawk unmanned air vehicles (UAV) and 49 ground stations (partly deployable). An additional option would be to deploy an RQ-4B from existing USAF inventory and an A321 without the radar to act as command and control platform.

The radar itself, designated the Transatlantic Cooperative AGS Radar (TCAR), will capitalise on technology developed by Northrop Grumman and Raytheon for the US Multi-Platform Radar Technology Insertion Programme (MP-RTIP) and in connection with Europe's Stand-off Surveillance and Target Acquisition Radar (SOSTAR) technology demonstrator programme. The development of the radar is the most time-critical factor in the entire AGS project.

In the opinion of experts from the German Defence Ministry, the timetable at any rate is “very demanding”. A memorandum of understanding (MoU) is to be prepared by the end of the year so that the development contract can be signed in the spring of 2005. The procurement phase would then be submitted for approval in 2007, with the aim of achieving an initial operational capability (IOC) by the end of 2010.

The costs of the AGS programme have not yet been finally fixed. There is talk of $350 million for development and $3.15 billion for procurement, but as far as the Germans are concerned, “The costs must at any rate be lowered.”

Raytheon finds it difficult to understand why they cannot continue into the definition phase and submit another bid. “Our solution would be $1.7 billion cheaper. That is more than any single contribution by one European country,” said Norman Ray, President of Raytheon Europe, in an interview with FLUG REVUE. “NATO has picked the most expensive solution of all. They simply haven't used the competition to squeeze out a lower price,” says Ray.

From page 10 of FLUG REVUE 7/2004

Last updated 11 June 2004

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