a quantitative analysis of colombiaexportvirginia.org/wp-content/uploads/2016/06/... · platform...

27
PRIVATE & CONFIDENTIAL A quantitative analysis of Colombia Key Export Markets for U.S. Defense Suppliers Prepared for:

Upload: others

Post on 21-May-2020

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL

A quantitative analysis of Colombia

Key Export Markets for U.S. Defense Suppliers

Prepared for:

Page 2: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 2

Executive Summary

The Virginia Economic Development Partnership asked Avascent to evaluate four defense export markets based on current and future procurements of defense materiel

Colombia exhibits growth in defense spending generally, and defense procurement in particular; further, their historic preference for U.S. equipment makes them attractive export markets

However, the mix of defense investment priorities is shifting in these markets in response to changes in the internal and regional threat environment

Further, an increasing desire to maintain diverse supplier relationships and to develop indigenous industry may present challenges to U.S. firms wishing to serve these markets

Page 3: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 3

Structure and Definitions

The data used in these reports is sourced from Avascent’s Global Platforms and Systems tool, which takes a bottom-up and top-down approach to identifying and forecasting defense procurement in the U.S. and abroad

In addition to qualitative market analysis, each country report features the following quantitative views:

– Defense Platforms. This view depicts current and future procurements of integrated ground, airborne, and ship platforms as well as integrated air defense systems

– Defense Systems. This view disaggregates platforms into their component electronic systems, spanning C4I, electronic warfare, and sensing equipment

–Prime Contractors. This view displays the market share among major platform integrators

–Sub-Contractors. This view represents a level of granularity below prime contractors and displays the market share among major sub-system manufacturers

–Opportunity Space. This view categorizes emerging stated or projected military requirements by platform type and electronic systems market category

Note: Additional methodology slides are available in the appendix

Page 4: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 4

Key Colombian officials advocate maintaining a robust defense budget, despite an anticipated peace plans with the FARC

— Colombian officials have been conducting peace talks with the FARC since 2012 and negotiations are rumored to be heading towards a final agreement in 2016

— The Colombian defense and finance ministers are committed to funding a robust defense budget over the next five years whether or not the peace talks are successful

— However, other officials argue that defense spending should be cut to reintegrate fighters into society, build infrastructure, and compensate victims from the war

— While tension between these two groups may lead to some volatility in Colombia’s defense spending in the near-term, overall defense spending will continue to grow to fund increasing salaries and training for personnel

Colombia is expected to continue with major air and sea modernization programs

— The Navy has announced plans to procure eight frigates with IOC expected by 2022

— The Air Force is expected to spend over $1.3B on a future fighter procurement within the 2018-2022 timeframe

Colombia:Defense spending grows despite peace plan with FARC

Budget Transparency Not

TransparentTransparent

Economic Outlook

Threat Environment and Spending DriversGDP & Defense Spending (millions USD)

Forecast Summary

Exchange Rate

2376

Defense spending will slow as Colombian negotiations with the FARC near a successful conclusion, and O&M is likely to bear the brunt of this slowdown

The high investment spending growth rate is an artifact of an extreme decrease in the procurement budget in 2015-2016, which will rise to normal levels again in the out-years

GDP Growth

7.6%

Defense Growth

2.9%

Investment Growth

20%

Defense Spending Outlook

Defense Accounts Outlook

Falling oil prices and declining oil production likely led the IMF torevise Colombia’s GDP downwards for 2015

However, Colombia is expected to have strong GDP growth from2016 onwards as the economy adjusts

NOTE: GDP is drawn from the IMF and all figures are nominal; growth rates are for 2016-2021

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Procurement R&D Personnel O&M Pensions GDP

Page 5: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 5

Market Overview: Defense PlatformsA combination of declining Colombian spending and the wrap-up of Plan Colombia reduced spending from 2013-2015, but platform spending will increase as major procurement programs get underway

• Future Main Battle Tank

• Future Air Defense Vehicle

• Future Self-Propelled Howitzer

Wheeled & Tracked

Combat Vehicles

• Future Fighter Aircraft

• Future Trainer Aircraft

• KC-390 Development & Production

Fixed Wing

Aircraft

Market Segment OverviewMarket Size and Forecast (2011-2021)

• Future Frigate

• ARC 20 de Julio OPV

• Landing Craft Utility VesselSurface Vessels

Key:

$104.6M 25%Wheeled & Tracked Combat Vehicles

Fixed Wing Aircraft $40.5M 51%

2016 CAGR 2016-21

• UH-60M Batch I

• UH-60L Batch II - Army

• UH-60L Batch II - Police

• UH-60L Batch IRotorcraft

Surface Vessels $100.9M 19%

Rotorcraft $0M 0%

• $357M

• $290M

• $180M

• $1.1B

• $106M

• $60M

• $200M

• $180M

• $3M

• $87M

• $72M

• $72M

• $56M

2011-21 Value

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Wheeled & Tracked Combat Vehicles Fixed Wing Aircraft

Surface Vessels Rotorcraft

Unmanned Aerial Systems Logistics Vehicles

Mill

ion

s

Page 6: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 6

Market Overview: Defense SystemsSpending on weapons will continue to be a major part of defense investment activity to procure new munitions and replenish weapons expended during ongoing operations

• Torpedoes & Weapon Support Equipment

• Missiles

• Ammunition

• Gun Systems

Weapons

• Communications Equipment

• Command & Control Equipment

• Other C4I Equipment

• Network EquipmentC4I

Market Segment OverviewMarket Size and Forecast (2011-2021)

• Optical Systems

• Radar Systems

• Other Sensors

• Sonar SystemsSensors

Key:

$133 M 11%Weapons

C4I $115 M 12%

2016 CAGR 2016-21

• RF-Based EW Systems

• Other EW/Information Warfare

• Optical-Based EW Systems

• EW Expendables

Electronic Warfare

Sensors $26 M 28%

Electronic Warfare (EW) $4 M 68%

• $929M

• $220M

• $153M

• $64M

• $578M

• $260M

• $94M

• $60M

• $156M

• $148M

• $100M

• $6M

• $177M

• $35M

• $5M

• $5M

2011-21 Value

$-

$100

$200

$300

$400

$500

$600

$700

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Weapons C4I Sensors EW Avionics

Mill

ion

s

Page 7: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 7

Prime Contractor Activity 2011-2021

Market Overview: Prime ContractorsIndigenous contractors will remain important parts of defense activity, but major platform acquisitions tend to come from well-established foreign primes

Top Contractors

• Indumil

• Cotecmar

• Lockheed Martin

• ThyssenKrupp AG

• Elbit Systems Ltd.

• Thales

• General Dynamics

• Textron

• LIG Nex1

• Airbus Group

Historical tendency towards American imports creates significant opportunities in Colombia

2011-21 Value

• $790M

• $545M

• $430M

• $390M

• $350M

• $200M

• $133M

• $129M

• $100M

• $98M

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Mill

ion

s

Indumil Cotecmar Lockheed Martin

ThyssenKrupp AG Elbit Systems Ltd. Thales

General Dynamics Textron LIG Nex1

Airbus Group Contractor Not Yet Selected

Page 8: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 8

Subcontractor Activity 2011-2021

Market Overview: SubcontractorsGovernment to government transactions make the U.S Department of Defense one of the top subcontractors in Colombia, presenting an attractive sales channel for U.S. firms

Top Contractors

• U.S. Department of Defense

• Indumil

• Cotecmar

• Elbit Systems Ltd.

• Lockheed Martin

• Government of Germany

• Thales

• General Dynamics

• ThyssenKrupp AG

• LIG Nex1

Beyond direct government-to-government sales, Colombia will, where possible, source from local contractors

2011-21 Value

• $1.2B

• $790M

• $383M

• $352M

• $271M

• $257M

• $192M

• $135M

• $133M

• $100M

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Mill

ion

s

U.S. Department of Defense (DoD) Indumil Cotecmar

Elbit Systems Ltd. Lockheed Martin Government of Germany

Thales General Dynamics ThyssenKrupp AG

LIG Nex1 Contractor Not Yet Selected

Page 9: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 9

Market Overview: Defense Platform OpportunitiesMajor investments in ground, air and maritime platforms represent significant opportunities for exporters

Wheeled & Tracked

Combat Vehicles

Fixed Wing

Aircraft

Platform Opportunities (2016-2021)

Surface Vessels

Key:

$0M $1,250MWheeled & Tracked Combat Vehicles

Fixed Wing Aircraft $0M $1,190M

2016 Total 2016-21

Unmanned Aerial

SystemsSurface Vessels $16M $421M

Unmanned Aerial Systems $10M $113M

• Future Main Battle Tank

• Future Air Defense System

• Future Self-propelled Howitzer

• Wheeled Combat & Support Vehicles

• Future Multirole Fighter Aircraft

• Future Trainer Aircraft

Market Segment Overview

• Surface Vessel Development

• Future Frigate

• Projected Indigenous UAV

• Projected Tactical UAV

• Projected Man-portable UAS

• $357M

• $290M

• $178M

• $64M

• $1.1B

• $107M

• $221M

• $200M

• $60M

• $37M

• $16M

2016-21 Value

$-

$100

$200

$300

$400

$500

$600

$700

$800

$900

2016 2017 2018 2019 2020 2021

Wheeled & Tracked Combat Vehicles Fixed Wing Aircraft

Surface Vessels Unmanned Aerial Systems

Logistics Vehicles Rotorcraft

Mill

ion

s

Page 10: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 10

Market Overview: Defense Systems OpportunitiesDefense communications equipment represents a major opportunities for potential exporters, as Colombia will look to local suppliers for ammunition and small caliber gun systems

C4I

Weapons

System Opportunities (2016-2021)

Sensors

Key:

$22M $650MC4I

Weapons $17M $612M

2016 Total 2016-21

Electronic Warfare

Sensors $12M $384M

Electronic Warfare $1.6M $215M

• Communications Equipment

• Command & Control Equipment

• Other C4I Equipment

• Networking Equipment

• Torpedoes & Weapon Support Equipment

• Missiles

• Ammunition

• Gun Systems

Market Segment Overview

• Optical Systems

• Radar Systems

• Other Sensors

• Sonar Systems

• RF-Based EW Systems

• Other EW/Information Warfare

• Optical-Based EW Systems

• EW Expendables

• $264M

• $191M

• $94M

• $60M

• $302M

• $220M

• $48M

• $41M

• $139M

• $134M

• $100M

• $6M

• $171M

• $35M

• $5M

• $4M

$-

$50

$100

$150

$200

$250

$300

$350

$400

$450

2016 2017 2018 2019 2020 2021

Mill

ion

s

C4I Weapons Sensors EW Avionics

2016-21 Value

Page 11: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 11

Policy Priorities

Structure

Colombia’s two main defense customers, the military and national police, are both managed under the Ministry of Defense

Colombia Ministry of DefenseColombia’s defense ministry includes a variety of homeland security functions, most importantly the National Police

Ministry of Defense Organizational Chart

Military commands are a separate part of the organizational structure from the planning and industrial ministries

The National Police are a significant part of the Ministry of Defense

The Deputy Minister of Corporate Sector Defense and Welfare is responsible for managing offsets and industrial policy

Military Chaplain

General Command

Military Forces of Colombia

Cabinet Secretary

National Police of Colombia

Minister of National Defense

Luis Carlos Villegas Echeverri

Deputy Minister of Corporate

Sector Defense and Welfare

General Secretary

Deputy Minister for Strategy and

Planning

Deputy Minister for International Policies & Issues

Army NavyAir

Force

The Colombian government has had two main priorities for its arms procurement:

– Acquiring equipment to sustain operations against FARC rebels and drug cartels

– Supporting and expanding their industrial base

Higher end equipment typically imported from the United States

Page 12: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 12

Challenges

Trends

Colombia Offsets and Defense PolicyColombia has significant offset requirements that it uses to improve both its defense industrial base and provide social services through the Office of the Deputy Minister of Corporate Sector Defense Group and Welfare

• Reduced US aid may put pressure on defense spending

• High requirements for offsets for any sale

• Corruption has been a recurring issue in the Colombian military

• Colombian support for indigenous defense firms limits imports to more complex/higher end platforms and systems

Colombia’s defense policy currently plans for aggressive increases in defense spending in spite of progress being made on peace talks with FARC

Major acquisitions in the near-term will require significant offsets (Main Battle Tank procurement, future fighter and trainer aircraft)

Any transaction with a value greater than $1.5 million (US) carries a 100% minimum offset obligation

Offsets are then directed to one of two areas:

– Social and Enterprise Group of Defense (GSED)

– Social Policies

Physical Rehabilitation

Education & Childcare

Job Training

Biofuels

Direct foreign investment into the Colombian defense industrial base is not allowed

Companies are required to propose a Framework Offset Agreement describing the offset that would accompany their contract and specific terms of implementation

Significant Colombian Defense Firms

Weapons Ships AircraftCorporation of the

Colombian Aeronautical

Industry

Page 13: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 13

Colombia Defense Summary

Colombia remains one of the larger South American defense markets for exporters

Colombian defense spending is scheduled to grow from 2016 to 2021 (3%)

Defense spending growth may slow as Colombian negotiations with the FARC near a successful conclusion

Planned investments will require the purchase of non-Colombian equipment

–New tanks and armored vehicles

–New fighter and trainer aircraft

–New frigates

–Weapons purchases and replenishment

Air-to-Air Missile

Air-to-Ground Missile

100% offset requirement adds substantial cost to export sales

There are significant opportunities for defense exporters, but downside risks and high offset requirements temper attractiveness of the market

Page 14: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 14

AppendixThe slides that follow describe the methodology employed in collecting the

underlying market data and offer definitions of the market categories depicted in the “Defense Systems” slides; more granular definitions and representative

examples are available by request

Page 15: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 15

Top Down and Bottom-up Analysis: Avascent places a detailed bottom-up build of defense procurement in international markets in the context of budget realities

$-

$1

$2

$3

$4

$5

$6

$7

$8

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Bill

ion

s

Awarded Stated Opportunity Projected Opportunity

Projected White Space Investment Topline

1

2

3

4

5

First, Avascent identifies the sum of the R&D and Procurement accounts to use as a bounding function for the bottom-up analysis

Next, the build of Awardedprograms looks at acquisitions that are in progress or that will not be competed

Third, Avascent looks at government documents and statements to identify Stated Opportunities that will be competed

Fourth, Avascent uses gap analysis, life expectancy, and other factors to derive Projected Opportunities that do not reflect a gov’t statement

Finally, the delta between identified spending and the topline is Shapeable Opportunity Space not associated with a requirement

Example: Composition of Defense Investment in Brazil by Opportunity Type Relative to the Procurement and R&D topline

Page 16: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 16

Platform and System-Level Analysis: Avascent disaggregates spending on acquisition programs to allow for analysis at the level of the major sub-system, integrated platform, or total program

Eurofighter Typhoon

Omani Air Force

$3.8 billion

12 Units to be delivered between 2017 and 2024

Initial Services

$1.2 billion

Total Hardware Cost

$2.6 billion

Training and Support

$257 million

Installation and Fielding

$902 million

Airframe and Structures

$1.1 billion

CAPTOR-E Radar

$227 million

Passive IR Tracking

$136 million

Mission Computers

$90 million

Praetorian Defensive Aid

$113 million

Other Systems

$588 million

Total Program

Integrated Platform

Major Sub-System

Page 17: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 17

Ground Systems*

Theater Deployable

Tactical/Mobile

Strategic Weapons

Enterprise Fixed

0Manportable

ManportableSystems

Satellites &Launch Vehicles

Space Range Systems

Launch Vehicles

Space Vehicles

Other Systems

Robotics Technology

Multiple Systems

Other

Airborne

Unmanned Aerial Systems

Rotorcraft

Fixed Wing Aircraft

Airship/Aerostat

Aircraft Technology

Multiple Aircraft

• Combat UAS• MALE/HALE• Man-Portable UAS• Other/Various UAS• Tactical UAS• Target Drone• VTOL UAS

• Attack/Armed Reconnaissance

• Maritime• Multiple Rotorcraft• Other Rotorcraft• Utility/Multi-Role

• Fighter/Attack/Bomber• ISR/EW/Special Mission• Mobility Aircraft• Other/Multiple Aircraft• Special Operations• Trainer Aircraft

Ground Vehicle

Logistics Vehicle

Unmanned Ground Systems

Multiple Vehicles

Ground Vehicle Technology

Wheeled & Tracked Combat Vehicles

• Other/Multiple Vehicles• Tracked Vehicles• Wheeled Combat /

Support Vehicles

Maritime

Surface Vessels

Submarines

Multiple Ships

Ship Technology

Unmanned Maritime Systems

• Aircraft Carrier• Amphibious Landing• Logistics/Sealift• Mine Warfare Vessel• Other Vessels• Patrol/Missile Boats• Surface Combatants• Multiple Vessels

Weapons

Maritime

Ground Vehicle

Manportable

Other Systems

Ground Systems*

Airborne

• Multiple Ships• Submarines• Surface Vessels

• Multiple Vehicles• Wheeled & Tracked Combat

Vehicles

• Enterprise Fixed• Strategic Weapons• Tactical/Mobile• Theater Deployable

• Fixed Wing Aircraft• Multiple Aircraft• Rotorcraft

• Multiple Systems

Platform Type Taxonomy

*Unlike Ground Vehicles, Ground Systems are immobile systems or fixed systems

Page 18: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 18

SECTOR OVERVIEW: C4I

C4I EW/IW Platforms Sensors Weapons

Combat Systems

Airborne CombatSystems

Ship CombatSystems

Ground CombatSystems

Integrated C4ISystems

IntelligenceSystems

Tactical Systems

Strategic Systems

Communications

Line of Sight (LOS)

Beyond Line ofSight (BLOS)

Space Payloads

IntegratedDeployable Comms

C4I Networks

Fixed C4IInfrastructure

Commodity ITResources (C4I)

Security/Encryption

C4I IA

Other C4I

Flight Control &Cockpit Avionics

Other VehicleElectronics

Other C4I Systems

C4I S&T

Perimeter Security

Other ShipElectronics

Unallocated C4I

N/A

Command & Control (C2)

C2 Systems

IFF Systems

Combat ID

Positioning &Navigation Systems

Air TrafficControl Systems

Ground ControlSystems

Weather Systems

Logistics

Training Systems

Fire Control Systems

Page 19: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 19

C4I

Networks

• Systems that form the network infrastructure of the DoD Enterprise

• Systems in this segment may be closely related to other systems found under Communications, but the emphasis in Network infrastructure is on fixed systems geared towards enterprise-wide uses rather than mission uses

C4I Sector

Communications

• Systems used to transmit, receive and disseminate voice, video and data

• Systems in this segment may be closely related to other systems found under Network Infrastructure, but the emphasis in Communications is on deployable and/or mobile systems geared toward warfighting and combat support activities

Other C4I

• Includes all other programs that do not directly fit into a separate category of analysis

Intelligence Systems

• Systems used to display, organize, manipulate and disseminate intelligence information

• Intelligence Systems may exist at either tactical or strategic levels

• Includes systems geared toward tasking, processing, exploitation, dissemination functions

Command & Control (C2)

• Systems used to display, organize, and manipulate information for purposes of decision support and execution

Combat Systems

• Integrated C4I systems on platforms (e.g. AWACS) or larger weapon systems (e.g. Aegis)

Sector Segment Segment Definition

SEGMENT DEFINITIONS: C4I

Page 20: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 20

RF-Based EWSystems

ECM Systems

Radar WarningReceivers (RWR)

ESM Systems

EA & JammingSystems

Optical-Based EWSystems

Laser WarningReceiver

EO/IR Jammer

Missile WarningReceivers

Integrated EO/IREW System

Information Warfare

InformationOperations

Other EW/IW

Airborne HFI

EW S&T

IW S&T

Unallocated EW/IW

EW Expendables

Chaff

Flares

CountermeasureDispenser

Decoys & SmartExpendables

C4I EW/IW Platforms Sensors Weapons N/A

SECTOR OVERVIEW: ELECTRONIC WARFARE / INFORMATION WARFARE (EW/IW)

Page 21: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 21

Other EW/IW

• Includes all other EW/IW funding that does not fit into the other segments

• Includes Airborne Hostile Fire Indicator, and EW/IW S&T

EW/IW

Information Warfare

• Systems used to create information-related effects, including for psychological operations, civil affairs, disinformation, and other purposes

RF-Based EW Systems

• Systems that detect and in some cases counter RF-based systems or threats

• Includes Radar Warning Receivers, ECM, ESM, and Jamming systems

Optical-Based EW Systems

• Systems used to detect and in some cases counter EO/IR based systems

• Includes Laser Warning Receiver, Missile Warning Receiver, EO/IR Jammer

EW Expendables

• Expendables including, chaffs, flares, countermeasure dispenser, decoys and smart expendables

Sector Segment Segment Definition

SEGMENT DEFINITIONS: EW/IW

Page 22: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 22

Power & Propulsion

Integration ArmorBasic

ConstructionPlatform Services

Other Platform

Turbofan &Turbojet Engines

Turboprop &Turboshaft Engines

Gas/Diesel Engines

Vehicle Transmissions

Platform Integration

Power &Propulsion S&T

Nuclear Power

Rocket Motors

Electric &Hybrid Electric

Auxiliary Power Unit

Tactical MobilePower Generation

ManportablePower

Other Propulsion

Reactive Armor

Passive Armor

Airframe

Active ProtectionSystems

Body Armor

Armor S&T

Administration &Management

Engineering SupportServices

Installation &Fielding

Training

Initial Spares

Training Systems& Simulators

Ejection Seats

CBRNE Equipment

Other SupportEquipment

Other Platform S&T

Other PlatformElectronics

UnallocatedPlatforms

Vehicle Frame

Hull

Satellite Bus

Space LaunchAssembly

Construction &Material S&T

C4I EW/IW Platforms Sensors Weapons N/A

SECTOR OVERVIEW: PLATFORMS*

*The Platform segmentation outlined in this section serves the purpose of breaking out non-electronic platform related value

Page 23: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 23

PlatformsSector

Platform Services

• Captures the value of services that are typically acquired in parallel with the platform itself

Power & Propulsion

• Components that provide platform mobility or generate power to sustain on-board electronics. This category includes engines, transmission and other drivetrain components as well as power generators and auxiliary power units

Integration

• Represents the value, usually awarded to the prime contractor, of overall system architecture and design development

Basic Construction

• Captures the value of structural, non-electronic, non-propulsion elements of the airframe, hull, or vehicle chassis of a platform

Armor

• Materials or active systems that minimize the destructive effect of a kinetic impact• This category includes platform-based armor (both passive and reactive) as well as

body armor and non-EW active protection systems

Other Platform

• Captures electronic, or other contractor-addressable, equipment that does not fit into any other Platform segment

Sector Segment Segment Definition

SEGMENT DEFINITIONS: PLATFORMS

Page 24: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 24

Optical Systems

Radar Systems Sonar SystemsSIGINT

SystemsPortable Unmanned

SystemsOther Sensors

Night Vision

Laser Surveillance& Targeting

EO/IR Surveillance& Targeting

Optical SatellitePayload

Ground Detection& Targeting

Airborne Fire Control

Counter-Battery

Air & MissileDefense RadarsAirborne Early

Warning

Navigation

Air TrafficControl Radars

Space Surveillance

Meteorology

Mine/IED Detection

Airborne SonarSystems

Ship/Sub SonarSystems

SIGINT Systems

Optical S&T

Sonobuoys

Sonar S&T

UnattendedGround Sensors

Portable UAS

Small UGVs

MaritimeSurveillance

Non-Acoustic ASW

CBRNE Detection

Other Mine/IEDDetection

Multi-SensorSystems

Other AcousticSensors

Other Sensor S&T

Unallocated Sensors

Radar S&T

Integrated EO/Laser/IR Systems

C4I EW/IW Platforms Sensors Weapons N/A

SECTOR OVERVIEW: SENSORS

Page 25: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 25

Other Sensors

• Includes a variety of systems that do not clearly fit within any of the other sub-segments• CBRNE Detection• Multi-Sensor Systems and sensor integration/fusion efforts• S&T on sensor technology that cannot be attributed to specific phenomenologies

SensorsSector

PortableUnmanned

Systems

• Small, man-portable platforms equipped with sensors that have the sole mission of surveillance and reconnaissance

Optical Systems

• Electro-optical cameras used for surveillance and reconnaissance, navigation, night vision enhancement, targeting and fire control, and vehicle self-protection

• Laser systems used for fire control and target acquisition

RadarSystems

• Radar systems of nearly any function or mission

• Radar altimeters may be encompassed within C2-Naviation Systems

SIGINTSystems

• Systems used for the detection, identification, and exploitation of RF signals for intelligence purposes

SonarSystems

• Acoustic systems for navigation, communication, or detection of objects beneath the surface of the water

• Includes both active and passive sonar systems

Sector Segment Segment Definition

SEGMENT DEFINITIONS: SENSORS

Page 26: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 26

MissilesGuided

WeaponsDirected Energy

Gun Systems AmmunitionOther Weapons

Investment

Air-to-Ground

Air-to-Air

Anti-Ship

Air & MissileDefense Interceptors

Air-to-GroundPrecision Munitions

Precision Artillery& Mortar

Guided WeaponS&T

DE S&T

Anti-Radiation

Strategic Weapons

Land AttackTactical Missiles

Close CombatTactical Missiles

BMD SE&I

Missile S&T

Lethal

Non-Lethal

Airborne GunSystems

Artillery/TankGun Systems

Other VehicleWeapon Systems

Naval GunSystems

Large Caliber

Small Caliber(.50cal and below)

Ammunition S&T

Small Arms

Torpedoes &Equipment

Non-Lethal Weapons(Non-Directed Energy)

Unguided Bombs

EOD & Countermine/ IED Equipment

Targets

Weapon SupportEquipment

Mines

Gun Systems S&T

Unallocated Weapons

Vehicle ActiveProtection Systems

Other Weapon S&T

C4I EW/IW Platforms Sensors Weapons N/A

SECTOR OVERVIEW: WEAPONS

Page 27: A quantitative analysis of Colombiaexportvirginia.org/wp-content/uploads/2016/06/... · Platform Opportunities (2016-2021) Surface Vessels Key: Wheeled & Tracked Combat Vehicles $0M

PRIVATE & CONFIDENTIAL | AVASCENT | 27

WeaponsSector

Ammunition• Ammunition for both small (less than 12.5mm / .50cal) and large-caliber

(20mm+) weapons. Includes ammunition for mortars and artillery, but excludes smart ammunition and/or guided munitions (e.g. EXCALIBUR)

Guided Weapons• Includes precision weapons that do not have organic propulsion• Precision guided bombs and precision artillery projectiles

Gun Systems• Large gun systems which are integrally tied to a platform

Directed Energy• Includes both lethal and non-lethal directed energy systems

Other Weapons Investment

• A catch-all category to house specific sub-segments that do not adhere to dynamics relevant to other Weapons market segments

Missiles• Self -propelled guided weapons, fired from multiple platforms, against a variety

of targets

Sector Segment Segment Definition

SEGMENT DEFINITIONS: WEAPONS