Defense Articles

The men and women of the San Diego Police Department got a much-appreciated Christmas present a while ago. In the beginning of 2003, they were limited to 9mm pistols firing 147-grain subsonic ammunition. By the beginning of 2004, it was a different ball game. The department’s approximately 2,000 sworn officers were authorized to carry .40 or .45 caliber semiautomatics too, with a broad approval policy that included conventional double action pistols, Springfield Armory XDs, Taurus 24/7s, Glocks and even cocked and locked 1911s. By the end of January 2004, some 450 of these cops had voted with their feet and their wallets and bought larger-caliber duty guns.

Says SDPD Rangemaster and Handgunner columnist Dave Douglas, of those who bought the larger caliber guns, “The Glock 21 is far and away the most used, followed by the SIG P220. We also have a smattering of about 60 1911 and HK users.” All these pistols are chambered for .45 ACE with SDPD issuing the 230 grain Federal Tactical hollowpoint.

Emergent Information Technologies Inc. (Nasdaq:EITI) was named one of world’s top 100 defense contractors in the July 30-Aug. 5, 2001 edition of Defense News.

“Being named as one of the world’s top 100 defense contractors is a wonderful tribute to our excellent employees and to our customers in the Department of Defense, the intelligence community and the commercial defense industry. Receiving this recognition is a great confirmation of our efforts to strategically position ourselves for growth in this constantly changing industry,” said Steven Myers, Emergent’s chairman, president and CEO.
Emergent ranked as the 89th largest defense contractor based on 2000 revenues in a comparison that lists total revenue ($120.1 million), defense revenue ($90.1 million) and percent of revenue from defense services (75%).

About Emergent

Emergent Information Technologies’ Government Services Group is a leading provider of systems engineering, modeling, simulation and analysis, communications, command and control systems interoperability testing and evaluation, and space science mission data processing and analysis.

Emergent’s wholly owned subsidiary, Steven Myers & Associates, Inc. (SM&A) is the world’s leading provider of competition management services, and also provides management consulting and commercial program management and systems engineering services.

Statements herein concerning the company’s growth and strategies may include “forward-looking statements” within the context of the federal securities laws. Statements regarding the company’s future events, developments and future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The company’s actual results may differ materially from those suggested as a result of various factors. Interested parties should refer to the disclosure set forth under the caption “Risk Factors” and elsewhere in the company’s Form 10-K for the year ended Dec. 31, 2000 and the 10-Q for the period ended March 31, 2001, for additional information regarding risks affecting the company’s financial condition and results of operations.

“By launching Defense Daily Report across the airwaves, we’re extending our reach to millions of defense professionals who want a quick and reliable take on the events, issues or proceedings happening that day in and around Washington, DC,” said Jennifer Schwartz, VP and group publisher of Defense Daily. “We’re pleased that Federal News Radio and the Report’s sponsor, Harris Corporation, support our publication and our award-winning news coverage.”

Defense News, the premier weekly global source for the news and analysis of politics, business and technology of defense, has named veteran aerospace journalist, Andrew Chuter as the new European Editor of Defense News and DefenseNews.com.

Chuter’s impressive track record consist of approximately 30 years as a reporter and editor with aerospace and defense publications. He became news editor of Flight International in 1989. Before that, he was a reporter and then news editor of Jane’s Defence Weekly, and a reporter for Interavia, the monthly aerospace magazine based in Geneva.

“Andrew will bring added value to our international coverage, given his achievements and years of experience reporting on defense and aerospace issues,” said Executive Editor Rick Barnard. “In 2000, Chuter was named `Journalist of the Year,’ by the United Kingdom’s Royal Aeronautical Society for his coverage of the Libyan civil aviation industry.”

Chuter joins Defense News on February 4th and will be based in the newspaper’s London office. “I am delighted to be apart of Defense News,” Chuter said. “It is clearly the best in its field at coverage of the business and political issues that are so important to government and industry readers in Europe and around the world.”

Defense News is published by Army Times Publishing Company, a subsidiary of Gannett Co., Inc. Gannett is an international news and information company that publishes 97 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns in excess of 300 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. In the United Kingdom, Gannett subsidiary Newsquest plc publishes nearly 300 titles, including 15 daily newspapers. Gannett also operates 22 television stations in the United States and is an Internet leader with sites sponsored by most of its TV stations and newspapers including USA TODAY.com, one of the most popular news sites on the web. Information obtained from this press release must be attributed in full to Defense News.

Defense News, the premier weekly global source for the news and analysis of politics, business and technology of defense is establishing a news bureau in the Middle East and naming veteran defense journalist Riad Kahwaji as bureau chief.

Executive Editor Rick Barnard said, “Riad Kahwaji has more than a decade of experience in covering Middle East affairs. “This new venture for Defense News and DefenseNews.com strengthens our coverage and helps us deliver added value to our readers each week.”

Kahwaji has been a journalist and defense analyst for 14 years. He was a Middle East correspondent for Jane’s Defense Weekly and before that, the deputy assignment editor to the London-based Middle East Broadcasting Center television network, and a reporter and producer for the British Broadcasting Corporation (BBC) World service.

Kahwaji will be based in the Dubai Media City, UAE. “It is an honor to be the first Middle East bureau chief for Defense News and DefenseNews.com,” Kahwaji said. “The paper is a prestigious weekly regarded by defense experts everywhere as the best there is in coverage of the business and political issues that affect defense planning and the defense marketplace.”

A native of Lebanon, Kahwaji is fluent in Arabic, and is a contributor to pan-Arab daily Al-Hayat. Kahwaji holds a master’s degree in War Studies from King’s College, the University of London.

“The creation of a permanent bureau in the Middle East reflects our determination to boost our coverage of this important region,” said Elaine Howard, president of Army Times Publishing Co., Defense News’ corporate parent. “The defense strategies and requirements of Middle East nations are of ever-increasing importance to our readers.”

Defense News is published by Army Times Publishing Company, a subsidiary of Gannett Co., Inc. Gannett is an international news and information company that publishes 97 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper.

The company also owns in excess of 300 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. In the United Kingdom, Gannett subsidiary Newsquest plc publishes nearly 300 titles, including 15 daily newspapers.

Gannett also operates 22 television stations in the United States and is an Internet leader with sites sponsored by most of its TV stations and newspapers including USA TODAY.com, one of the most popular news sites on the web. Information obtained from this press release must be attributed in full to Defense News.

Army Times Publishing Company (ATPCo) is pleased to announce the appointment of the new editor for the company’s defense publication.

Vago Muradian has been named editor of Defense News, bringing more than a decade of in-depth experience covering the world of defense. Mr. Muradian will be responsible for setting the editorial tone and direction for the world’s leading defense newsweekly.

Beginning his career in 1992 with the newsletter, Inside The Army, Mr. Muradian then joined Defense News where he covered U.S. and international land warfare markets, missile defense, unmanned aerial vehicles and helicopters. He later moved to Air Force Times, another publication within ATPCo, where his beats included procurement issues, the Air Mobility Command, and operations in Somalia, Zaire, Europe, and Haiti.

In 1996, Mr. Muradian left to become deputy editor at Defense Daily, where he covered a wide range of military and industry issues, including military procurement, mergers and antitrust policy, acquisition reform, and export controls. He later became the founding editor of Defense Daily International in 2000.

“Vago brings a new kind of leadership, expertise, vision and vitality to Defense News,” said Tobias Naegele, editor-in-chief for ATPCo. “His ability to break news, anticipate change and explain the story behind the events is unique in the industry. He’s going to take Defense News to a whole new level.”

Army Times Publishing Company is a subsidiary of Gannett Co., Inc. Gannett is an international news and information company that publishes 97 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper.

The company also owns in excess of 300 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. In the United Kingdom, Gannett subsidiary Newsquest plc publishes nearly 300 titles, including 15 daily newspapers. Gannett also operates 22 television stations in the United States and is an Internet leader with sites sponsored by most of its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the web.

“There is not going to be any reduction in the National Guard.”

- Secretary of the Army Francis J. Harvey, news briefing, Jan. 18, 2006

CUT AND RUN

“We are now very close to that point of general agreement in the Iraq war. Do you believe that if Bush, Cheney and company could turn back the clock, they would do this again? And now, thanks to Rep. John Murtha, it is permissible to I say, or at least to ask, ‘Why not just get out now? Or at least soon, on a fixed schedule?’”

-Michael Kinsley, “The Phony War Against the Critics,” The Washington Post, Nov. 25, 2005

SENATE WATCHING GUARD CHANGES

“Reducing National Guard numbers during a time of war requires serious debate, and I believe the Department of Defense should work closely with Congress as it considers changes to our nation’s armed forces.”

-Sen. Bill Frist, R-Tenn., press statement, Jan. 30, 2006

DAMNING PRELIMINARY DRAFT

“The first official history of the $25 billion American reconstruction effort in Iraq depicts a program hobbled from the outset by gross understaffing, a lack of technical expertise, bureaucratic infighting, secrecy and constantly increasing security costs, according to a preliminary draft.”

-James Glanz, “Iraq Rebuilding Badly Hobbled, U.S. Report Finds,” The New York Times, Jan. 24, 2006

IN TOUCH WITH THE TROOPS?

“I’m not for the war. And being against the war and saying you support the troops is one of the wussiest positions the pacifists have ever taken. When you volunteer for the U.S. military, you pretty much know you’re not going to be fending off invasions from Mexico and Canada. So you’re willingly signing up to be a fighting tool of American imperialism, for better or worse. Sometimes you get lucky and get to fight ethnic genocide in Kosovo, but other times it’s Vietnam.”

-Joel Stein, “Warriors and Wusses,” Los Angeles Times, Jan. 24, 2006

MISSILE DEFENSE ALTERATIONS

“It is not unthinkable that new threats might overtake missile defense by the time it is ready for deployment. In the meantime, it has altered nuclear strategies and the role of nuclear weapons from deterrence to war fighting.”

-Manpreet Sethi, “New Face of Security,” DefenseNews, Jan. 16, 2006

FROM COMBAT TO SUPPORT

“Convening Guard combat brigades-which have between 3,500 and 4,000 soldiers-to support units, which tend to be smaller, would probably mean some states will see a reduction in their overall number of soldiers.”

-Tom Bowman, “Army Secretary Defends Plan to Restructure National Guard,” The Baltimore Sun, Jan. 27, 2006

FLU RESPONDERS

Hugh Hewitt: Is the Department of Defense prepared for the bird flu if it in fact becomes transmissible human-to-human?

Secretary of Defense Donald H. Rumsfeld: You never know how widespread it would be and how rapidly it would hit … We ended up within a matter of days and weeks with something like 22,000 active forces and 50,000 Guard and Reserve forces in Louisiana and Mississippi. … There isn’t another institution that can put that much assistance on a particular problem in that short a time.

-Defense Secretary Donald H. Rumsfeld, radio interview, Jan. 25, 2006

WON’T RELY ON THE GUARD AS MUCH

“You’re going to see the number of Guardsmen and Reserves are going down dramatically in theater. The Guard bought the active Army the time to do this reorganization that I talked about, this restructuring. Now that is very much down the line, very great progress we’ve made. So we’re not going to rely on the Guard and Reserve as much.”

-Army Secretary Francis J. Harvey, radio interview, Jan. 26, 2006.

UNPREPARED AND UNACCEPTABLE

“The searing pictures of those who were left behind in New Orleans-at the Super Dome, the Convention Center, on the I-10 overpass, and in flooded medical facilities-are images that remain with us. Emergency planning that does not make provisions for society’s most vulnerable-the aged, the sick, the poor-is not just operationally unacceptable. It is morally unacceptable.”

“Pentagon leaders should be instructed to stop using National Guard units for overseas combat instead of homeland security.”

-Editorial, “The Army We Weed,” The New York Times, Nov. 19, 2006

TERROR WAR STANDOUTS

“If there’s a hero out of all of this, it’s a young man and young woman in uniform. It’s the National Guard staff sergeant. It’s the corporal in the Marine Corps. These are the ones that are standing out. And it’s rather interesting, Mr. Chairman, that this is the first time, at least in recorded history, modern history, that the American public have fully supported those in uniform. But the support for the mission is waning, as you know.”

-Rep. Ike Skelton, D-Mo., House Armed Services Committee hearing, Nov. 15, 2006

CRITICAL MONTHS

“I listened as you said the next months are critical, and it seems that we always hear the next few months are critical. I remember my first trip to Iraq in 2003, a couple of months after Saddam fell, and everyone agreed that we had a window of opportunity to win the hearts and minds of the Iraqi people. … A year ago, there were 400 attacks a day against our troops. It’s up to 800 insurgent attacks now and we’re told it’s just a matter of a few months, the next few months are critical.”

-Rep. Marty Meehan, D-Mass., to David Satterfield, State Department Coordinator for Iraq, House Armed Services Committee hearing, Nov. 15, 2006

MORE TROOPS

“In discussions with our commanders and Iraqi leaders, it’s clear that they believe Iraqi forces can take more control faster, provided we invest more manpower and resources into the coalition military transition teams, speed the delivery of logistics and mobility enablers and embrace an aggressive Iraqi-led effort to disarm illegal militias.”

-Gen. John Abizald, Commander, U.S. Central Command, House Armed Services Committee hearing, Nov. 15, 2006

SMART BOMB

“HALF US JON CARRY-WE R STUCK HEAR N IRAK.”

-1st Brigade Combat Team, 34th Infantry Division, Minnesota Amy National Guard, The New York Post, Nov. 2, 2006.

COMBAT ADVISERS

“The reassessment of U.S. strategy in Iraq should radically alter the combat mission of the American troops serving there. The key policy change is to embed five times as many U.S. combat advisers into Iraqi battalions. This will, on the one hand, reduce the size and casualties of U.S. forces, and on the other, strengthen the Iraqi army-the only institution that can stop the creeping civil war.”

-Hans Binnendijk and Bing West, “Force multiplier,” The Wall Street Journal, Nov. 21, 2008

EMERGENCY SUPPLEMENTAL

“It’s not an emergency, it sure as hell is not supplemental, and it doesn’t appear in the budget. It’s an accounting trick.”

-Rep. Nell Abercromble, D-Hawall, “Interview: Newsmakers on the Record,” DefenseNews, Nov, 20, 2006

WORN DOWN

“The Army and its National Guard and Reserve have been worn down-some would say worn out-by the endless deployments of troops on one-year combat tours in Iraq and Afghanistan.”

-Joseph L. Galloway, “It’s Past Time to Start Repairing Army, Marines, “azstamet.com, Nov. 20, 2006

LOOKIN’ FOR SWAGGER

“I think James Baker and Dick Cheney should take Bush out to the woods around Camp David. After 24 hours in a sweat lodge, he should be given only a loin cloth, a hunting knife and a canteen of water. Bush should then set out to track and kill a black bear, after which he should eat its still beating heart so he can absorb its spirit. He should then fly back to Washington in Marine 1. His torso still scratched from the bear’s claws, his face bloodied and steaming in the November chill, he should immediately give a press conference at which he throws the bearskin on the front row of the press corps, completely enveloping Helen Thomas, declaring, Tm not going anywhere.’”

EDGEWOOD, N.Y. — CPI Aerostructures, Inc. (”CPI”) (AMEX:CVU) today announced that it has been selected as one of the Fast Track 50 companies by DefenseNews. CPI ranked #2 for 3-year revenue growth among the 50 leading defense companies on the list. Inclusion in this year’s list was based on revenue growth, which needed to be a minimum of 10 percent over the past year, three years and five years.

Edward J. Fred, CPI’s President & CEO stated, “We are delighted to be recognized by DefenseNews along with such a distinguished list of defense companies. Despite being the smallest company on the list, CPI exceeded all but one of its peers with 3-year revenue growth of 48.9%. With our proven performance as a military supplier, our strong balance sheet, and our prime contractor and subcontractor capabilities, CPI is poised for continued success.”
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This year’s Fast Track 50 list appears in the August 23, 2004 issue of DefenseNews. The list will also be posted online at www.defensenews.com, which should be accessible within the next few weeks. DefenseNews is part of the Army Times Publishing Company, the leading military and government news periodical publisher.

Founded in 1980, CPI Aerostructures is engaged in the contract production of structural aircraft parts principally for the U.S. Air Force and other branches of the armed forces. In conjunction with its assembly operations, CPI provides engineering, technical and program management services. Among the key programs that CPI supplies are the C-5A Galaxy cargo jet, the T-38 Talon jet trainer and the E-3 Sentry AWACS jet.

The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI’s SEC reports, including CPI’s Form 10-KSB for the year ended December 31, 2003 and Form 10-QSB for the quarters ended March 31, 2004 and June 30, 2004.

The Department of Defense has released details on major defense acquisition program cost, schedule, and performance changes since the September 2005 reporting period. This information is based on the Selected Acquisition Reports (SARs) submitted to the Congress for the December 2005 reporting period.

SARs summarize the latest estimates of cost, schedule, and technical status. These reports are prepared annually in conjunction with the president’s budget. Subsequent quarterly exception reports are required only for those programs experiencing unit cost increases of at least 15 percent or schedule delays of at least six months. Quarterly SARs are also submitted for initial reports, final reports, and for programs that are rebaselined at major milestone decisions.

The total program cost estimates provided in the SARs include research and development, procurement, military construction, and acquisition-related operation and maintenance (except for pre-Milestone B programs, which are limited to development costs pursuant to 10 U.S.C. [section]432). Total program costs reflect actual costs to date as well as future anticipated costs. All estimates include anticipated inflation allowances.

The following current estimate of program acquisition costs for programs covered by SARs for the prior reporting period (September 2005) was $1,539,048.8 million. After adding the costs for two new programs–ARH (Armed Reconnaissance Helicopter) and JLENS (Joint Land Attack Cruise Missile Defense Elevated Netted Sensor System)–and subtracting the costs for final reports on a completed program (LHD 1 Amphibious Assault Ship), a restructured program (TSAT (Transformational Satellite Communications System)), the completed Fire Unit portion of Patriot PAC-3 (Patriot Advanced Capability), and the completed MK 1 portion of SSDS (Ship Self Defense System) from the September 2005 reporting period, the adjusted current estimate of program acquisition costs was $1,517,182.4 million.

For the December 2005 reporting period, there was a net cost increase of $39,723.0 million billion or + 2.6 % for programs that have reported previously, resulting in a new current estimate of $1,584,718.7 million. The net cost increase was due primarily to the application of higher escalation rates (+ $21,194.6 million), an increase in support requirements (+ $7,521.9 million), a net stretch-out of development and procurement schedules (+ $5,627.0 million), higher program cost estimates (+ $2,589.5 million), additional engineering changes (hardware/software) (+ $2,325.6 million), and a net increase of planned quantities to be purchased (+ $446.6 billion). Details of the most significant changes follow, summarized by program.

The National Defense Authorization Act (NDAA) for FY 2006 made changes to the Nunn-McCurdy unit cost reporting statute for DoD major defense acquisition programs (10 USC [section]2433). The primary change was the addition of 30percent and 50percent unit cost thresholds against the original baseline estimate approved at System Development and Demonstration (Milestone B). The existing 15percent and 25 percent unit cost thresholds were retained against the current baseline estimate. For the December 2005 reporting period:

DoD has one program with a Nunn-McCurdy unit cost breach of more than 15 percent but less than 25 percent to the current baseline estimate. Notification and unit cost breach information will be provided to the Congress for this program.

* GMLRS (Guided Multiple Launch Rocket System)

DoD has three programs with Nunn-McCurdy unit cost breaches of more than 25 percent to the current baseline estimate. Notification and unit cost breach information will be provided to the Congress for these programs, and the USD(AT & L) will consider whether to certify that the programs should continue.

* ASDS (Advanced SEAL Delivery System) (no certification–program cancelled)

* Global Hawk

* NPOESS (National Polar-Orbiting Operational Environmental Satellite System).

DoD has 11 programs with Nunn-McCurdy unit cost breaches of more than 30 percent but less than 50 percent to their original baseline estimate. Notification and unit cost breach information will be provided to the Congress for these programs.

* ATIRCM/CMWS (Advanced Threat Infrared Countermeasure/Common Missile Warning System)

* C-130 AMP (Avionics Modernization Program)

* Chem Demil (Chemical Demilitarization) CMA (Chemical Materials Agency)

* Chem Demil CMA Newport

* EFV (Expeditionary Fighting Vehicle)

* F/A-18

* JASSM (Joint Air-to-Surface Standoff Missile)

* JPATS (Joint Primary Aircraft Training System)

* JSF (Joint Strike Fighter)

* MH-60S

* SSN 774 (Virginia Class)

DoD has 25 programs with Nunn-McCurdy unit cost increases of more than 50 percent to their original baseline estimate. However, these increases are not Nunn-McCurdy breaches since NDAA permits the original baseline estimate to be revised to the current baseline estimate as of Jan. 6, 2006.