WASHINGTON — Now that details of the $110 billion arms package offered to Saudi Arabia are known, Lockheed Martin appears to be the clear winner among American defense firms.\u00a0
That said, it appears the big winner, at least on the platform side, is<\/p>\n\n\n\n
Lockheed Martin<\/b><\/p>\n\n\n\n
, with an estimated $29.1 billion in potential sales.<\/p>\n\n\n\n
The world\u2019s largest defense contractor has a stranglehold on several high-end, key programs sought by the Saudis. That includes seven THAAD missile defense batteries ($13.5 billion), and three KC-130J and 20 C-130J aircraft ($5.8 billion), as well as\u00a0four multi-mission surface combatant ships ($6 billion) which are expected to be selected from Lockheed’s design.<\/p>\n\n\n\n
The company\u2019s Sikorsky arm also benefited, with two types of Black Hawk variants: 14 MH-60R Seahawk rotorcraft ($2 billion) and 30 UH-60 rescue helicopters ($1.8 billion). That could potentially grow. A statement from Lockheed, released after the visit to Saudi Arabia, claimed that a deal was being reached with Saudi company Taqnia to “support final assembly and completion of an estimated 150 S-70 Black Hawk utility helicopters for the Saudi government.”<\/p>\n\n\n\n
A few other companies also fared well.<\/p>\n\n\n\n
Boeing<\/b><\/p>\n\n\n\n
cashed in with an eight-year sustainment deal ($6.25 billion) for their F-15 aircraft, along with a relatively small $20 million deal to run a study on recapitalizing Saudi\u2019s older fleet of F-15 C\/D aircraft.<\/p>\n\n\n\n
Raytheon’s<\/b><\/p>\n\n\n\n
big win came from an unknown type of enhancement for the Patriot missile system ($6.65 billion).<\/p>\n\n\n\n
BAE<\/b><\/p>\n\n\n\n
, meanwhile, hopes to bring in $3.7 billion worth of work on its Bradley vehicle, with a pair of contracts \u2013 one to modify 400 existing vehicles, and another to produce 213 new ones. (The company may also cash out on an order for 180 Howitzers, worth $1.5 billion.)<\/p>\n\n\n\n
There is also a $2 billion order for an unknown number of Mk-VI patrol boats, produced by<\/p>\n\n\n\n
SAFE Boats International.<\/b><\/p>\n\n\n\n
The previously unreported list includes roughly 104,000 air to surface weapons, including 27,000 GBU-38 designs ($1.24 billion, Boeing), 9,000 GBU-31v3 designs ($690 million, Boeing), 9,000 GBU-31v1 designs ($490 million, Boeing), 50,000 GBU-12 designs ($1.67 billion, Lockheed and Raytheon) and 9,000 GBU-10 designs ($370 million, Lockheed and Raytheon.)<\/p>\n\n\n\n\n\n
Known unknowns<\/b><\/p>\n\n\n\n
But there is a chance for more growth, based on a set of unspecified aircraft and satellite programs. The list includes $2 billion for a light air support aircraft, type and quantity to be decided later. It also includes another $2 billion for four new aircraft to replace the Kingdom\u2019s Tactical Airborne Surveillance System, which serves a similar role to the U.S. Air Force JSTARS.<\/p>\n\n\n\n
The light air support seems to have a fairly small list of options: either Textron with it\u2019s AT-6 (or, perhaps, its Scorpion jet, still in search of a first customer) or the Embraer\/Sierra Nevada team\u2019s A-29 Super Tucano. Both the UAE and Jordan have ordered the A-29, so buying the Super Tucano would give the Kingdom commonality with two of its closest allies.<\/p>\n\n\n\n
The wildcard may be the U.S. Air Force\u2019s OA-X experiment, which is holding a flyoff between the Scorpion, AT-6 and A-29 this summer. In theory, the Air Force is looking at replacing the A-10 with one of the three planes, but the service has been careful to stress this summer\u2019s action is more of a fact-finding exercise than a downselect. At the same time, if the USAF shows a preference for one of the jets, the Saudis may look in the same direction.<\/p>\n\n\n\n
As to the TASS replacement, the first question is whether the Saudis look to glom onto the JSTARS recapitalization, which should be awarded sometime in fiscal year 2018. If so, Boeing, a<\/p>\n\n\n\n
Northrop Grumman\/L-3\/General Dynamics<\/strong><\/p>\n\n\n\n team and a Lockheed Martin\/<\/p>\n\n\n\n Bombardier team would benefit here.<\/strong><\/p>\n\n\n\n\n\n However, the TASS and JSTARS setups are somewhat different, and it may be the Saudis would look for a custom solution.<\/p>\n\n\n\n Meanwhile, the Kingdom has been offered a clutch of satellites, with as-yet-unknown designs: two “Remote Sensing Satellites” estimated at $800 million and two satellite communications & space based early warning systems estimated at $4 billion.<\/p>\n\n\n\n Given the focus on missile defense, the\u00a0space based early warning systems\u00a0could well be a derivative of Lockheed\u2019s Space Based Infrared System (SBIRS) missile defense satellite. If so, the U.S. may be able to seek an arrangement with the Kingdom on information sharing, which would widen the overall capability of the missile tracking system.<\/p>\n\n\n\n How quickly these contracts can be pushed through the system is an open question.\u00a0Roman Schweizer, an analyst with Cowen Washington Research Group, wrote in a note to investors Friday that “precision munitions and missile defense remain top priorities for the Kingdom.”<\/p>\n\n\n\n “We think the elements of the package will probably go through as individual items, which could reduce opposition. We think some of the more easily defined items that have been either sold to Saudi before or to other countries could proceed quickly (such as THAAD, Patriot, precision munitions, helicopters, F-15, C-130Js, etc.),” he wrote.<\/p>\n","protected":false},"excerpt":{"rendered":" Now that details of the $110 billion arms package offered to Saudi Arabia are known, Lockheed Martin appears to be the clear winner among American defense firms, with others also poised to benefit as well. <\/p>\n","protected":false},"author":7,"featured_media":114516,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":19,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[11,47,19,48],"tags":[],"coauthors":[3378],"class_list":["post-54608","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global","category-mideast-africa","category-pentagon","category-the-americas"],"acf":{"subheadline":"","legacy_arc_id":"JSWVSBWUJFET7KZIB2A4RAW6MM","arc_canonical_url":"\/pentagon\/2017\/06\/09\/here-are-the-big-industry-winners-in-the-saudi-weapons-offer\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"\n