Analysis & Reports

Navantia and Kongsberg Naval Services signed a framework agreement in Bergen on 14 May 2026 to support and modernize the Royal Norwegian Navy’s F-310 frigates. This agreement establishes a long-term partnership for maintenance and technical evolution of the frigates, enhancing Norway's naval capabilities. It marks the third contract between Navantia and Norway regarding the Nansen-class frigates, demonstrating sustained cooperation and confidence from the Norwegian Ministry of Defence.

The U.S. Air Force plans to fully network its KC-135 Stratotanker fleet within six years, as stated by Lt. Gen. David Tabor during a congressional hearing on May 13, 2026. This initiative follows a fatal collision of two KC-135s in Iraq, highlighting the urgent need for improved connectivity. Approximately $105 million is allocated for connectivity upgrades in fiscal year 2027, with a total of $1.1 billion planned over the next five years. The upgrades include the installation of hybrid satellite communications terminals and the ATOMS software architecture to enhance operational capabilities.

The U.S. Air Force awarded Ansys a contract worth $82.1 million for advanced modeling and simulation software at Edwards Air Force Base. This contract, effective from May 11, 2026, to May 10, 2031, will support critical aerospace testing programs. Ansys, based in Pennsylvania, is recognized for its engineering simulation tools used across major defense projects.

BAE Systems secured a $535.6 million contract from the U.S. Army for self-propelled howitzer systems and fielding kits, effective through December 31, 2029. The contract, awarded by Army Contracting Command at Detroit Arsenal, Michigan, emphasizes the production of the M109A7 Paladin and includes logistical support for operational deployment. This move aligns with the Army's ongoing artillery modernization efforts in response to recent global conflicts.

Ukraine launched a large-scale retaliatory strike campaign overnight into May 15, targeting Russian military and industrial infrastructure across multiple regions. Key strikes included the Ryazan oil refinery, resulting in casualties, and attacks on military assets such as aircraft and air defense systems in Crimea and Luhansk Oblast. This operation aimed to disrupt Russian military capabilities and logistics.

Members of Congress urged U.S. Navy and Marine Corps leaders to prioritize domestic shipbuilding during a hearing on the fiscal 2027 Defense Department budget. The Navy's shipbuilding plan includes evaluating overseas options for construction, with a need for 540,000 jobs to support domestic production. Lawmakers expressed concerns about the implications of relying on foreign shipyards while emphasizing the importance of reviving the U.S. maritime industrial base.

The U.S. Congress and the Department of War are implementing significant reforms to the defense acquisition system as part of the Fiscal Year 2026 NDAA. These reforms aim to enhance competition among defense contractors and streamline procurement processes. L3Harris is investing heavily in expanding its manufacturing capabilities for missile defense technologies. The report highlights the importance of a level playing field for all companies in the defense industrial base to maintain military readiness against adversaries like China and Russia.

The USS Gerald R. Ford is returning to Naval Station Norfolk on Saturday after a record-breaking 324-day deployment at sea. During its mission, the carrier operated in the High North region and the Eastern Mediterranean, completing five Suez Canal transits. The deployment involved significant logistical operations and marked a historic achievement for the U.S. Navy.

U.S. Central Command reported that its bombing campaign has significantly diminished Iran's military capabilities, particularly in the Strait of Hormuz, where a blockade has been imposed. Despite this, Iran retains some missile capabilities and continues to threaten regional stability. The U.S. has eliminated 90% of Iran's naval mines and degraded its defense industrial base, but the situation remains tense with ongoing threats to maritime commerce.

Quantum Space is constructing its first satellite and establishing a manufacturing facility in Tulsa, Oklahoma, to support propulsion testing. The Army's 18th Airborne Corps successfully tested autonomous medical resupply using drones. Additionally, Anduril secured $5 billion in funding, raising its valuation to $61 billion, indicating strong investment in defense technology.

The U.S. Air Force confirmed the modernization of the B-52 Stratofortress is stabilized after years of delays and rising costs. The B-52 Commercial Engine Replacement Program is projected to cost $15 billion, while radar upgrades have also seen significant cost increases. The Air Force plans to keep the B-1 Lancer operational until 2037 and is conducting an analysis for future bomber requirements.

U.S. Special Operations Command (SOCOM) is seeking a budget increase to $24 billion by FY31 to address a 300 percent rise in demand for special operations capabilities over the past five years. SOCOM has faced resource shortages, denying requests for operations on 70 occasions in the past year. The report emphasizes the need for strategic investments to maintain U.S. superiority in irregular warfare and ensure readiness for future conflicts.

Peru ordered a fifth C-27J Spartan tactical airlifter, set to be delivered in 2027. This order brings the total number of C-27Js sold worldwide to 100, marking a significant milestone for Leonardo. The Peruvian Air Force has been operating the C-27J since 2015, utilizing it for various missions across challenging terrains. The new aircraft will feature upgraded systems to enhance performance and efficiency.

Quantum Space plans to establish a satellite manufacturing facility in Tulsa, Oklahoma, aiming to produce 1,000 satellites annually. The company is developing advanced technologies for its Ranger Prime satellite, including multi-mode propulsion and in-space refueling capabilities. Initial operations are expected to begin in early 2027, with contracts secured from DARPA and the Space Force to support these efforts.

The U.S. Army's 4th Infantry Division is set to test the integration of Valinor’s Harbor platform with Anduril Industries’ Lattice command and control system at Fort Carson, Colorado. This integration aims to enhance battlefield casualty tracking and medical logistics, providing commanders with real-time visibility of medical status alongside tactical information. The testing will occur during the Ivy Mass exercise, assessing the effectiveness of this new capability in operational conditions.

The Department of Veterans Affairs approved at least $2.7 million in improper claims for service-connected benefits between September 2023 and August 2024. An Inspector General report revealed that the automated system incorrectly labeled deaths as service-related, potentially rejecting legitimate claims. The VA has since revised its procedures to address these issues and improve the accuracy of its automated claims processing system.

The U.S. Navy is prioritizing unmanned surface vessels (USVs) to alleviate operational pressures on its aging fleet, as discussed at the Xponential/MDEX conference in Detroit. USVs are being considered as substitutes for certain missions traditionally performed by manned ships, allowing for more efficient use of resources. This approach enables the Navy to deploy tailored forces for specific missions, enhancing operational effectiveness and reducing costs. Japan is also looking to integrate USVs for improved surveillance in its maritime domain.

Pete Hegseth, the U.S. Secretary of War, unveiled a proposed $1.5 trillion defense budget, framing it as a generational down payment on national security. The budget allocates $756 billion for new military capabilities, including significant investments in air power and shipbuilding. It also includes an 800% increase in artificial intelligence funding and aims to reshore critical minerals. The proposal's success hinges on congressional approval and effective execution of the outlined spending plans.

Ukraine is establishing a legal framework for arms exports to the U.S. and integrating drone technology into joint ventures with American firms. The new export framework allows for the sale of drones, missiles, and other military equipment, reflecting a significant shift in Ukraine's defense strategy. Additionally, Ukraine signed the CORPUS Memorandum with five European nations to coordinate defense procurement efforts. This development comes as Ukraine's defense production capacity has surged, attracting interest from U.S. investors.

The Ukrainian-made Simba unmanned ground vehicle participated in the Crystal Arrow 2026 NATO exercise in Sēlija, Latvia, from May 5-15, 2026, primarily serving in a logistics role. It demonstrated capabilities such as delivering supplies and has accumulated over 1,600 kilometers in missions. The UGV is set for serial production in Ukraine, aiming for 25,000 units by mid-2026.