Possible sale of Patriot to Poland.

Khafee

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Possible sale of the Patriot air defense system to Poland

November 20/17: The US State Department has notified Congress that it is allowing the possible sale of the Patriot air defense system to Poland.

Released through the Defense Security Cooperation Agency (DSCA), the statement calls for the first phase purchase of a two-phase program for an Integrated Air and Missile Defense (IAMD) Battle Command System (IBCS)-enabled Patriot Configuration-3+ with Modernized Sensors and Components.

Valued at an estimated $10.4 billion, the package consists of:
4 AN/MPQ-65 radar sets,
4 engagement control stations,
4 Radar Interface Units (RIU) modification kits,
16 M903 Launching stations adapted,
18 Launcher Integrated Network Kits (LINKs) (includes 2 spares),
208 Patriot Advanced Capabilty-3 (PAC-3) Missile Segment Enhancement (MSE) missiles,
11 PAC-3 MSE test missiles,
IBCS software,
2 future operations – IBCS Engagement Operations Centers (EOCs),
6 current operations-IBCS EOCs,
6 engagement operations-IBCS EOCs,
15 Integrated Fire Control Network (IFCN relays,
4 Electrical Power Plants (EPP) III,
and 5 Multifunctional Information Distribution Systems/Low Volume Terminals (MIDS/LVTs).

Raytheon, Lockheed Martin, and Northrop Grumman have all been listed as prime contractors on the deal, and as many as 42 US Government and 55 contractor representatives will travel to Poland for an extended period for equipment de-processing/fielding, system checkout, training, and technical and logistics support.

While Warsaw has also requested offsets as part of the purchase, a decision will be announced upon negotiations between contractors and the Polish government. Current NATO allies that already operate the system on the continent include the Netherlands, Germany, Spain, and Greece, while Romania is also obtaining the system.

https://www.defenseindustrydaily.com/2007-updates-keeping-patriots-in-shape-02968/?utm_medium=textlink&utm_term=continuereading

PAC 3 MSE.jpg
 

Khafee

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DSCA Notification

Transmittal No: 17-67

WASHINGTON, Nov. 17, 2017 -

The State Department has made a determination approving a possible Foreign Military Sale to Poland for an Integrated Air and Missile Defense (IAMD) Battle Command System (IBCS)-enabled Patriot Configuration-3+ with Modernized Sensors and Components for an estimated cost of $10.5 billion. The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale on November 14, 2017.

The Government of Poland has requested to purchase phase one of a two- phase program for an Integrated Air and Missile Defense (IAMD) Battle Command System (IBCS)-enabled Patriot Configuration-3+ with Modernized Sensors and Components consisting of four (4) AN/MPQ-65 radar sets, four (4) engagement control stations, four (4) Radar Interface Units (RIU) modification kits, sixteen (16) M903 Launching stations adapted, eighteen (18) Launcher Integrated Network Kits (LINKs) (includes two (2) spares), two hundred and eight (208) Patriot Advanced Capabilty-3 (PAC-3) Missile Segment Enhancement (MSE) missiles, eleven (11) PAC-3 MSE test missiles, IBCS software, two (2) future operations – IBCS Engagement Operations Centers (EOCs), six (6) current operations-IBCS EOCs, six (6) engagement operations-IBCS EOCs, fifteen (15) Integrated Fire Control Network (IFCN relays, four (4) Electrical Power Plants (EPP) III, and five (5) Multifunctional Information Distribution Systems/Low Volume Terminals (MIDS/LVTs). Also included with this request are communications equipment, tools and test equipment, range and test programs, support equipment, prime movers, generators, publications and technical documentation, training equipment, spare and repair parts, personnel training, Technical Assistance Field Team (TAFT), U.S. Government and contractor technical, engineering, and logistics support services, Systems Integration and Checkout (SICO), field office support, and other related elements of logistics and program support. The total estimated program cost is $10.5 billion.

This proposed sale will support the foreign policy and national security objectives of the United States by helping to improve the security of a NATO ally which has been, and continues to be an important force for political stability and economic progress in Europe. This sale is consistent with U.S. initiatives to provide key allies in the region with modern systems that will enhance interoperability with U.S. forces and increase security.

Poland will use the IBCS-enabled Patriot missile system to improve its missile defense capability, defend its territorial integrity, and deter regional threats. The proposed sale will increase the defensive capabilities of the Polish Military to guard against hostile aggression and shield the NATO allies who often train and operate within Poland’s borders. Poland will have no difficulty absorbing this system into its armed forces.

The proposed sale of these missiles and equipment will not alter the basic military balance in the region.

The prime contractors will be Raytheon Corporation in Andover, Massachusetts, Lockheed-Martin in Dallas, Texas, and Northrop Grumman in Falls Church, Virginia. The purchaser requested offsets. At this time, offset agreements are undetermined and will be defined in negotiations between the purchaser and contractors.

Implementation of this proposed sale will require approximately 42 U.S. Government and 55 contractor representatives to travel to Poland for an extended period for equipment de-processing/fielding, system checkout, training, and technical and logistics support.

There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.

This notice of a potential sale is required by law and does not mean the sale has been concluded.

All questions regarding this proposed Foreign Military Sale should be directed to the State Department's Bureau of Political Military Affairs, Office of Congressional and Public Affairs, [email protected].

http://www.dsca.mil/major-arms-sales/poland-integrated-air-and-missile-defense-iamd-battle-command-system-ibcs-enabled
 

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Looks like Poland is gearing up to resist any future Russian aggression. Why would Poland needs to buy Patriot when it is next to Germany who has air defence systems that covers the entire country of Poland? Is the US by any means trying to expand its missile shield to counter Russia strategic capability!
 

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Looks like Poland is gearing up to resist any future Russian aggression. Why would Poland needs to buy Patriot when it is next to Germany who has air defence systems that covers the entire country of Poland? Is the US by any means trying to expand its missile shield to counter Russia strategic capability!
Seems like it.
 

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Poland has sticker shock over ‘unacceptable’ price tag for Patriot buy
By: Jen Judson
07 Dec 2017

WASHINGTON — Poland has been pushing toward a purchase of a medium-range air-and-missile defense system for many years, settling on an unprecedented configuration of the Patriot system, but was surprised by the high price tag presented when the U.S. State Department cleared the sale of half of the Patriots Poland plans to buy.

According to the Defense Security Cooperation Agency, when it notified Congress last month of the potential sale, the deal could cost the country $10.5 billion for four systems — that is roughly 37 billion zloties — which already exceeds by 7 billion zloties what Poland has said it would spend on the entire program.

The DSCA announcement only marks the progress in the first phase of the acquisition. Poland would like to see a second round of Patriot systems with a 360-degree detection capability and the first four retrofitted with the new radar in a subsequent deal.
[US State Department clears Poland’s $10.5B request to buy Patriot]

“The high cost came as a surprise for us,” Bartosz Kownacki, secretary of state in Poland’s Ministry of National Defense, told Defense News in a Dec. 5 interview in Washington.

“The price is indeed unacceptable for us even in the view of the significant financial assets that we allocated for the technical modernization of the Polish Armed Forces,” he said through a translator. “We cannot simply afford to spend that much money on the procurement of two batteries and [Patriot Advanced Capability]-3 missiles for such an amount of money.”

The offer from the U.S. included 16 missile launchers, four sector radars and 208 PAC-3 Missile Segment Enhancement (MSE) missiles.
The possible sale is a long time coming with Poland and the U.S. struggling through complicated negotiations over the past several years.

Poland began its “Wisla” competition to procure a medium-range air-and-missile defense system many years ago, ultimately choosing Patriot in 2014 but, instead of simply buying what Raytheon had at the ready, the country decided it wanted a command-and-control system for Patriot that is still in development by the U.S. Army and Northrop Grumman called the Integrated Battle Command System (IBCS) along with a new radar down the road.

Instead of opting for a simple foreign military sale like Romania did recently when purchasing Patriot, Poland is, in a sense, creating its own integrated air-and-missile defense program.

Poland has also been adamant about creating quality defense work for its industrial base and has demanded certain offsets to ensure growth in its defense industry.

“We will be doing thorough analyses of the draft Letter of Agreement once it is sent to us,” Kownacki said. Looking at his watch, he said he expected the draft LOA could be sent at anytime and could even be delivered during the interview.

The cost estimate for the Patriot deal was the topic of discussions held this week during Kownacki’s trip to Washington. “We simply cannot accept such financial conditions, we will be working hard on reducing it, we will be conducting a line-by-line review,” he said.

“We understand to reduce it more than one meeting will be required, maybe two or three meetings will be required to negotiate an acceptable, reasonable price.”

Kownacki added that there are other elements of the deal that came as a surprise as well. “For instance, the price of offset,” he said.
While some companies involved with the deal gave reasonable prices for offset, “there is one company which presented an unacceptable offset for us and conditions we cannot accept,” he said.

And even with the companies that offered reasonable deals, Kownacki said, there will still be an effort to negotiate the price down further.

Kownacki added it’s possible that over the course of the negotiations it will turn out that some of the high prices were presented to the country due to a misunderstanding of its offset regulations. Poland changed its offset regulations and there are a number of elements that may not be understood, he said.

While the price tag for the first round of Patriots should be higher because of some up-front costs that cover the program as a whole, it should still be proportionately smaller than what Poland plans to spend over the entire life-cycle of the program, Kownacki said.

“Of course we can’t foresee by how much we will manage to lower the price, nonetheless, the U.S. Administration as well as the companies are aware that we need to reduce this price,” he added. “I am confident that we will manage to reach our goal, our objective, and we are currently finalizing the project so we are in the last stage of negotiations.”

Some analysts in Poland are more than skeptical that the price tag can be reduced enough so the country doesn’t exceed the 30 billion zloties for which its has budgeted to cover the entire program.

The U.S. cost estimate already exceeds the limit set by Poland by 20 percent, Marek Swierczynski, of Poland’s Polityka Insight, points out in a recent report. “So it will be good if the first phase negotiations will end at 30 billion zloties,” he writes.

He calculates that if the second phase of the program reflects the first phase in numbers, the costs could be “colossal.” For example, the price of one Lockheed Martin-manufactured PAC-3 MSE for the U.S. Army is $5.7 million and, with the offset Poland wants, the cost could rise to $8 million, Swierczynski notes. The PAC-3 order is already reduced to a minimum so there is little wiggle room for price there. And he also writes the low-cost SkyCeptor missile that Poland wants to manufacture as part of the program is currently a wild card, falling in the second phase of the procurement.

Swierczynski suggests that if Poland wants to get the cost down significantly “it has to say goodbye to the prospect of technological leaps in radar or rockets. And that was the most important thing in the industrial part of the Wisla program.”

The future 360-degree radar’s cost is also an unknown because Poland won’t know what it is buying for some time.

And adding IBCS to the Patriot system is an additional cost, yet it doesn’t appear to be the reason for the enormous cost of the first phase of the program. Northrop Grumman confirmed to Defense News that IBCS actually makes up less than 15 percent of the total acquisition cost for the Wisla FMS acquisition.

https://www.defensenews.com/land/2017/12/06/poland-surprised-by-high-price-tag-for-its-long-awaited-patriot-purchase/
 

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