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    Article 1 Page 2 of 15 Copyright IHS and its affiliated and subsidiary companies, all rights reserved. All

    trademarks belon to IHS and its affiliated and subsidiar com anies all ri hts reserved.

    The US Army announced in July that it had selected ScorpionW2, similar to what it now wears in

    Afghanistan, as the new base combat uniform camouflage pattern that is to be phased in by 2018. (US

    Army)1365409

    This return to Iraq comes amid a continued 'rebalance' to the Asia-Pacific region, a mission to aid Ebola

    treatment efforts in Western Africa, a larger rotational presence in Eastern Europe to reassure allies that

    fear a bellicose Russia, and an unusual defence budgeting process hampered by political squabbling.

    Congress has yet to complete work on its fiscal year 2015 (FY 2015) defence legislation - a stop-gap

    Continuing Resolution (CR) is funding the government through to 11 December - and crafting the necessary

    bills may, for the second consecutive year, require a procedural workaround to reconcile the House and

    Senate version of the budget.

    [Continued in full version]

    Land

    It has been a busy 2014 for the US Army and 2015 looks as though it will be equally hectic.

    Army units - mainly headquarters staff and some rotational forces - have been sent to aide efforts to quell

    a deadly Ebola outbreak in Western Africa, for counterterrorism and advisory missions in Iraq, and as a

    counterweight to Russia in Eastern Europe.

    The army is also continuing its element of the White House's 'rebalance' to the Asia-Pacific region and in

    August began its 'Pacific Pathways' engagement programme with a battalion deploying to a variety of

    international exercises in the Pacific region.

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    US Army Pacific (ARPAC) expects to grow Pacific Pathways with at least three deployments in FY 2015 and

    then three each year thereafter. Each training pathway is a series of stops - ARPAC commander General

    Vincent Brooks envisions two to three stops per pathway - that ideally would be in three different

    geographic areas to increase US Pacific Command's options for using those troops in the event of an

    emergency.

    Despite concerns regarding Russia's actions in Ukraine's civil conflict, the US Army still appears to be

    sending troops back to the Pacific as deployments to Afghanistan are set to wind down in the next two

    years.

    There are now about 80,000 soldiers assigned to the Pacific, including the South Korea-based US 8th Army,

    although the force posture there is to alter somewhat because the 1st Armored Brigade Combat Team, 2nd

    Infantry Division, in South Korea is to be deactivated after being headquartered in South Korea since 1965.

    Still, US combat power on the peninsula is likely to be unchanged as about 4,600 soldiers from the 2nd

    Brigade Combat Team, 1st Cavalry Division, will replace the deactivated unit and mark the first brigade

    combat team (BCT) to rotate into South Korea under a new nine-month deployment plan.

    [Continued in full version]

    The AMPV is to replace the army's ageing M113s, which originated more than 60 years ago. The newest A3model is shown here. (BAE Systems)

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    1298829

    Air

    The US Air Force (USAF) in 2014 continued efforts to protect its three main modernisation efforts: the

    Long-Range Strike Bomber (LRS-B), the Lockheed Martin F-35 Lightning II Joint Strike Fighter (JSF), and the

    Boeing KC-46A Pegasus tanker. The only surprise move for aviation in the FY 2015 budget request was thePentagon asking Congress for USD1 billion for continued variable-cycle engine technology development.

    To fully fund all these efforts, the USAF plans to reduce tactical air squadron numbers, including the entire

    Fairchild Republic A-10 Thunderbolt II close-air support fleet. However, this retirement proposal has

    encountered staunch opposition in the US Congress and the battle will likely continue when a newly

    elected Republican majority takes its seats in January.

    The USAF wants to divest legacy aircraft such as the A-10 in favour of more survivable aircraft in the next

    five years. (Jamie Hunter)

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    The fleet retirement issue is expected to become a larger one across the services as parochial interests in

    Congress, and within the services, come up against budget realities and ageing fleets. Aviation leaders have

    expressed concern that the military could be left with a 'hollow force' of too many types that it cannot

    afford to keep current or fly as frequently as needed if they are barred from retiring them.

    Meanwhile, US aviation replacement programmes have encountered difficulties. In June an engine defect

    caused an F-35A test aircraft to catch fire upon take-off at Eglin Air Force Base in Florida. The entire JSF

    fleet was grounded, meaning that the USMC's F-35B failed to make a planned appearance at the

    Farnborough Air Show in the United Kingdom in July. Engine manufacturer Pratt & Whitney (P&W) agreed

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    The USAF's X-37B OTV landed at Vandenberg Air Force Base on 17 October. The spacecraft conducted on-

    orbit experiments for 674 days. (Boeing)

    1565653

    Sea

    Under continued budgetary pressures the USN in its FY 2015 budget proposal revealed a willingness to takean axe to operational forces and some of its prized programmes.

    Along with the proposition to sideline half of its Ticonderoga-class cruiser fleet and cap the Littoral Combat

    Ship (LCS) acquisition plans at 32 while planners examined 'small surface combatant' alternatives, the navy

    floated the forced option of retiring prematurely a Nimitz-class nuclear-powered aircraft carrier and

    standing down its associated carrier air wing.

    Should sequestration return in FY 2016 the navy would seek to decommission USS George Washington

    (CVN 73) early to save USD6 billion rather than fund its mid-life refuelling and complex overhaul (RCOH): a

    four-year process that would update the carrier to see it to the end of its intended service life.

    In the FY 2015 budget proposal the navy included funds to de-fuel the carrier in preparation for either early

    retirement or RCOH while deferring to the FY 2016 budget process the decision that would seal the

    carrier's fate. Retiring George Washingtonearly would require action from the Congress, as the USN must

    legally maintain an 11-carrier fleet.

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    Article 1 Page 7 of 15 Copyright IHS and its affiliated and subsidiary companies, all rights reserved. All

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    Nimitz-class aircraft carrier USS George Washington (CVN 73) leads US and Japanese ships during tactical

    manoeuvre training in the Philippine Sea on 28 November 2013. As 2105 dawns the fate of this carrier is far

    from certain. (US Navy)

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    Despite the fiscal climate, several naval shipbuilding programmes achieved major milestones in 2014. In

    October the navy commissioned the first of two new amphibious assault ships optimised for aviation: USS

    America(LHA 6) was placed into service in San Francisco, California, after completing its maiden transit

    around South America. The navy also commissioned its first Block III Virginia-class attack submarine, USS

    North Dakota(SSN 784). The lead boat boasts a redesigned bow in addition to the new 87-inch diameter

    Virginia Payload Tube. Its delivery was on schedule and below costs, despite its commissioning having been

    delayed by several months because of rework on defective vendor-assembled and -delivered components.

    In the first half of the year the navy received increased demand on its forces to support NATO efforts in the

    Mediterranean and Black Sea in the wake of Russia's incursion into Ukraine. USN ships also played key role

    in the Gulf and Middle East region as the United States and allied forces launched airstrikes against the

    Islamic State in Iraq and Syria.

    [Continued in full version]

    Canada

    In late November Canada's Harper government launched military strikes against the Islamic State forces in

    Iraq. Surprisingly, as with previous attacks on Libya, conducted as part of the NATO mission there, the acts

    of war took place amid continued cuts in defence readiness.

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    According to Public Accounts of Canada documents obtained by local agency Canadian Press, annual

    spending on equipment, weapon systems and procurement in 2013-14 fell by nearly CAD1 billion (USD880

    million) since its peak in 2010-11. Ironically, the notionally defence-friendly Conservatives began their

    tenure in power, which began in 2006, on a promising note.

    As part of a 'Canada First' Defence Strategy, the government announced the intention to buy tens of

    billions of dollars worth of major land, sea, and air equipment over the coming decade. Although

    technically this strategy remains intact, few, if any, of those major procurements have materialised.

    Delays, reconfiguring, and outright cuts have reached a point that Andrew Leslie, a former chief of Land

    Staff, recently told a Liberal convention that the Conservatives had "the worst record" on military

    procurement of any government in the last 50 years and that they are unable to "even buy a fleet of trucks

    painted green".

    The Harper government's most glaring problems relate to its plans to acquire 65 F-35s from Lockheed

    Martin. Joining the other early JSF adopters would give local contractors lucrative opportunities, the

    government had claimed, but estimates of the programme's cost - which was already slated to the largest

    in Canadian military history - ballooned, eventually rising fourfold.

    This forced the Harper government, which had skirted elementary procurement procedure by awarding

    the contract without soliciting competitive bids, to announce a review of its policy.

    Adding further uncertainty to the mix, late last month a Department of National Defence official told

    reporters that funds will be made available to extend use of the country's existing 77 Boeing CF-18 Hornet

    fighters by five years to 2025. The hope appears to be to postpone a decision on JSF until after the coming

    election, scheduled to occur next year.

    Meanwhile, things are going slightly better for Canada on the naval front. In 2011 the Harper government

    announced the selection of shipyards on Canada's east and west coasts to build up the country's navalcapabilities as part of its National Shipbuilding Procurement Strategy. Irving Shipbuilding Inc was chosen to

    build the CAD25 billion combat vessel portion, including Arctic patrol ships and a new fleet of surface

    combatants. Seaspan Marine Corp was chosen to build CAD8 billion worth of non-combat craft, notably

    support ships and science vessels. These contracts included hundreds of millions of dollars for Irving and

    Seaspan to upgrade their yards, both of whom have made substantial progress. Earlier this month Seaspan

    announced the completion of a CAD170 million modernisation of its Vancouver Shipyard facilities.

    However, in recent months the Harper government's decision to commit Canada to the multi-decade effort

    is starting to look suspect as well. True, that decision, which took place at time when arguably Canada's

    largest yard (the facilities just south of Quebec City currently owned by Davie Yards Inc) was inrestructuring, looked good at the time.

    [Continued in full version]

    Latin America

    The Latin American region was devoid of interstate conflict during 2014, which means that there are few

    triggers for large-scale conventional procurement in 2015. Nonetheless, the region remains relatively

    violent due to a large number of criminal groups that traffic in humans, drugs, weapons, and othercontraband throughout the hemisphere.

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    t d k b l t IHS d it ffili t d d b idi i ll i ht d

    An artist's representation of the Sikorsky S-92 in Presidential Helicopter colours. United Technologies'

    Sikorsky Aircraft unit in May received a USD1.24 billion Pentagon contract for a fleet of 21 helicopters to

    transport the president and other senior US officials. (United Technologies)

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    Copyright IHS Global Limited, 2014

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