Nordic firms ride wave of cyber M&A activity

HELSINKI — Nordic defense firms are buying each other up as they vie for a greater share of potential contracts that could come with increased cybersecurity funding among the region’s armed forces.

The mergers and acquisitions are taking place as Sweden seeks NATO membership, and neighboring Finland this year joined the alliance.

Combined, according to defense spending plans, the Nordic states of Denmark, Finland, Iceland, Norway and Sweden are to invest more than $2 billion to upgrade their respective military and national security cyber defenses over the next three years.

Meanwhile, cybersecurity companies are also forming strategic partnerships with the regional armed forces. For example, the Norwegian firm Atea won a two-year information technology and cybersecurity services contract worth $45 million from the Norwegian Defence Research Establishment (FFI) and the Norwegian National Security Authority (NSM).

The former is responsible for Norway’s defense research and development efforts, and the latter serves as the country’s national intelligence agency. FFI also operates as a procurement agency for the property-focused Norwegian Defence Estates Agency, the Norwegian Armed Forces and the NSM.

Atea signed the first segment of the two-part deal, with a two-year option, in June 2022. The second part of the deal was inked in April 2023. The contract covers the delivery of hardware, software, IT and network cyber defense solutions, and consultancy services.

“The deal reflects the greater emphasis on IT network and infrastructure security in national defense areas. The contract reinforces our positive and developing relationship with the defense sector,” said Steinar Sønsteby, CEO of Atea.

The appetite for strategic corporate partners in the Nordic cybersecurity domain gained momentum in 2022 following a far-reaching nonequity collaborative agreement between Finnish software specialist Digia and Danish cybersecurity technologies provider Arbit Cyber Defence Systems.

The collaboration was instrumental in securing a $6 million contract to build a protected information-exchange gateway for the Finnish Defence Forces, said Jussi Tammelin, the director of Digia’s defense unit.

The contract includes the supply of a secure information-exchange gateway communication solution, as well as software and equipment. The technology is based on Digia’s Linja software and Arbit’s data diode.

“Our collaboration with Arbit reinforces the capabilities of our defense and security sector services in the Nordic countries. International cooperation improves the competitiveness of both companies when it comes to defense sector tenders and increases defense sector exports,” Tammelin told Defense News.

In 2022, Digia accelerated its plan to establish a dedicated defense unit, after it became clear Sweden and Finland intended to apply for NATO membership.

Nordic countries must do more to strengthen their cybersecurity against increasing threats, said Natasha Friis Saxberg, the CEO of Danish ICT Industry Association, a trade organization representing information and communication technology firms.

According to Saxberg, the pooling of Nordic skill sets in this area, driven by the wave of cybersecurity mergers and acquisitions, is beneficial to developing a deeper pan-Nordic expertise to counter cyberthreats.

“A significant number of the cyberattacks emanating from Russia and linked to the invasion of Ukraine are directed at Denmark and the other Nordic countries. Today, cyberthreats play a significant role in every war and conflict, and therefore it is necessary to invest in cybersecurity and make it a central element of our defense,” Saxberg told Defense News

Growth trends

Acquisitions — such as Swedish firm Lyvia’s takeover of Polish company IT Systems and Solution — underline a trend where major players in the Nordic cybersecurity space with the financial means are looking to use such purchases to consolidate the market and accelerate regional growth. That acquisition by Lyvia is expected to help the company gain greater access to even larger contracts in the defense and national security sphere.

The purchase also improves Lyvia’s reach in to the Baltic region as well as Central and Eastern Europe, according to Oleksandr Fomenko, who leads the business’s Central and Eastern European division.

“We want to expand in this high-growth sector. ITSS is a large player in a fast-growing industry with top-drawer, end-to-end cybersecurity services and impressive IT infrastructure modernization resources,” Fomenko told Defense News.

Similarly, Norwegian cybersecurity company DNV’s $107 million purchase of Finnish firm Nixu was motivated by a desire to win more contracts, while taking advantage of increasing investments by Nordic governments to upgrade and maintain next-generation cyber defenses and more reliable IT infrastructure.

Nordic Council seeks deeper regional cybersecurity cooperation

DNV’s cybersecurity expertise has historically focused on high-security areas in energy, maritime, telecommunications and financial services. “By joining forces with Nixu, we will make cyberspace a more secure place with greater impact than either company could achieve alone,” said Remi Eriksen, DNV’s chief executive.

Other industrial acquisitions in the region included Sweden’s Truesec buying Danish firm Venzo Cyber Security. And Ireland-based Integrity360 acquired Sweden’s Netsecure. In Denmark, Columbus purchased ICY Security, while in neighboring Norway, Netsecurity acquired Data Equipment to create a new cybersecurity group with revenues of $74 million.

The acquisition of Venzo will allow Truesec to strengthen its cybersecurity offerings to both the corporate and national defense sectors in Denmark and the wider Nordic region, said Anna Averud, Truesec’s chief executive.

“The acquisition significantly enhances our cyber defense capabilities. It expands our capability to better defend cyberattacks. The pooling of our cyberspecialists with Venzo will make a significant difference in creating a safer society for all organizations in Denmark and Northern Europe,” Averud told Defense News.

Lawmaker summons Pentagon official over canceled travel software

WASHINGTON ― The Pentagon’s abrupt decision to cancel a new travel management system meant to replace its antiquated software has drawn scrutiny from the House Oversight and Accountability Committee.

Rep. Nancy Mace, R-S.C., who chairs the Subcommittee on Cybersecurity, Information Technology, and Government Innovation, invited the undersecretary of defense for personnel and readiness, Gilbert Cisneros, to testify before her panel on July 18. She wants him to explain why the Defense Department suddenly scrapped implementation of the MyTravel software.

“The rapid reversal on MyTravel ― a system being developed for [the department] for over four years at a direct cost of more than $20 million ― is troubling,” Mace wrote in a letter to Cisneros on Friday. “It inevitably raises broader questions about [the department’s] ability to manage its finances and information technology.”

Mace, who also sits on the Armed Services Committee, also asked Elizabeth Field, director of the Government Accountability Office’s defense capabilities and management team, to testify at the same hearing.

The $374 million MyTravel contract, initially awarded to SAP Concur in 2018, would have replaced the Pentagon’s 25-year-old Defense Travel System. An internal Defense Department memo in May noted that offices would no longer be required to use MyTravel and that the Pentagon would stop using the software altogether on Sept. 13.

The Mace letter points to a 2019 GAO study, which found the Defense Travel System “generated nearly $1 billion in improper payments” from fiscal 2016 through fiscal 2019.

Pentagon officials briefed House Oversight and Accountability Committee staff on the MyTravel cancellation in June. Mace’s letter notes the Defense Department was unprepared to implement the new software because of a delay in integrating it with financial management system upgrades.

“Absent this integration, the officials said, forced adoption of MyTravel would reduce the auditability of those components,” Mace wrote. The Pentagon has never passed any of the five audits it’s undergone.

Mace has also asked Cisneros to provide more details on the cancellation, including the issues with financial management system integration, in writing by July 14.

Defense Innovation Unit seeks proposals to ship cargo using rockets

WASHINGTON — The Defense Innovation Unit is seeking pitches from commercial space companies to provide “novel” launch capabilities for delivering cargo around the globe, into space and within space, from one orbit to another.

The Pentagon’s commercial innovation hub released a solicitation June 30 for a Novel Responsive Space Delivery effort, which aims to work with companies to prototype launch systems that can deliver cargo “to, from and through space.”

“Awarded companies will prototype autonomous delivery for one or more of three distinct modalities: from Earth to a mission-designed orbit or trajectory in space, orbital return from space to Earth to a precise point of recovery and through space from one orbit to another,” DIU said in its solicitation.

The Defense Department wants to be an early adopter of commercial rocket transport capabilities. The ability to quickly deliver cargo or personnel anywhere on Earth could have utility for near-term operations, including in the Indo-Pacific region, where island chains and large bodies of water present a mobility challenge.

The department has been working to mature an operational concept and acquisition strategy for acquiring these types of launch services since 2018, when U.S. Transportation Command started partnering with companies like SpaceX, Blue Origin, VOX Space and Rocket Lab USA through cooperative research and development agreements.

In 2021, the Air Force Research Laboratory started a program called Rocket Cargo to explore questions around feasibility, affordability and the mechanics of point-to-point space transport. The lab awarded SpaceX a $102 million contract in 2022 to provide data from flight tests of its Starship rocket, a 400-foot-tall reusable launch vehicle designed to carry people and cargo to and from space, or to fixed points around the world.

The Space Force, which would ultimately decide whether to formalize the effort, hopes to have a program in place by 2026.

DIU’s solicitation appears to move those efforts forward by calling for “flight-ready” proposals within two years of a contract award. The notice emphasizes the importance of mature, cost-effective solutions that can move large amounts and varied types of cargo. It also seeks proposals with a strong commercial business case and whose systems are designed to minimize the creation of debris on orbit.

During the first phase of the program, DIU will analyze the commercial viability of the selected proposals and refine concepts for operating the launch vehicles for cargo delivery. Later phases will focus on demonstrating specific capabilities like delivering large payloads to precise locations and the utility of some proposals for rescue or disaster response.

Satellite photos suggest Belarus is building military camp site

Satellite images analyzed by The Associated Press on Saturday showed what appeared to be a newly built military-style camp in Belarus, with statements from a Belarusian guerrilla group and officials suggesting it may be used to house fighters from the Wagner mercenary group.

The images provided by Planet Labs PLC suggest that dozens of tents were erected within the past two weeks at a former military base outside Osipovichi, a town 230 kilometers (142 miles) north of the Ukrainian border. A satellite photo taken on Jun. 15 shows no sign of the rows of white and green structures that are clearly visible in a later image, dated Jun. 30.

Wagner chief Yevgeny Prigozhin and his fighters escaped prosecution and were offered refuge in Belarus last week after Minsk helped broker a deal to end what appeared to be an armed insurrection by the mercenary group. The abortive revolt saw Wagner troops who had fought alongside Russia forces in Ukraine capture a military headquarters in southern Russia and march hundreds of kilometers (miles) toward Moscow, seemingly unimpeded.

Belarus’ authoritarian president, Alexander Lukashenko, said his country, a close and dependent ally of Moscow, could use Wagner’s experience and expertise, and announced that he had offered the fighters an “abandoned military unit” to set up camp.

Aliaksandr Azarau, leader of the anti-Lukashenko BYPOL guerrilla group of former military members, told The Associated Press by phone on Thursday that construction of a site for Wagner mercenaries was underway near Osipovichi.

Up to 8,000 fighters from Wagner’s private military force may be deployed in Belarus, a spokesperson for Ukraine’s border force told Ukrainian media Saturday. Speaking to the Ukrainska Pravda newspaper, Andriy Demchenko said Ukraine would strengthen its 1,084 kilometer (674 mile) border with Belarus in response.

Lukashenko previously allowed the Kremlin to use Belarusian territory to send troops and weapons into Ukraine. He has also welcomed a continued Russian armed presence in Belarus, including joint military camps and exercises, as well as the deployment of some of Russia’s tactical nuclear weapons there.

Demchenko told Ukrainska Pravda on Saturday that as of this week, some 2,000 troops from regular Russian army units remained stationed in Belarus.

At a Friday evening gala marking the Belarusian Independence Day, Lukashenko said that the Belarusian armed forces could benefit from training by Wagner members, and asserted that the mercenaries were “not a threat” to Belarusians.

He also declared that he was “sure” Belarus would not have to use the nuclear weapons deployed to its territory, and would not get directly involved in Moscow’s war against Ukraine.

“The longer we live, the more we are convinced that (nuclear weapons) should be with us, in Belarus, in a safe place. And I am sure that we will never have to use them while we have them, and the enemy shall never set foot on our soil,” Lukashenko said.

Striking workers at key Boeing supplier approve new contract

WICHITA, Kan. — Workers at Spirit AeroSystems have ratified a new contract and will end a brief strike that threatened to disrupt the manufacturing of airline jets at Boeing.

The International Association of Machinists and Aerospace Workers said the 6,000 employees at a plant in Wichita, Kansas, will return to their jobs on Wednesday. They went on strike last weekend after voting down a previous offer.

The union said late Thursday that 63% of members who voted on the new four-year contract proposal agreed to accept it. The union said it contained “significant improvements” in wages, overtime rules and prescription-drug coverage compared with the rejected offer.

The company said it would begin restoring operations at the plant Friday in anticipation of resuming full production next week.

“We listened closely to our employees and brought forward a fair and competitive offer,” CEO Tom Gentile said in a statement.

Details of the contract were not disclosed. The rejected offer included average pay raises totaling 34%, more paid time off and an increase in retirement benefits, according to the union.

Spirit builds the fuselage for Boeing 737 Max jets and makes other components for airline and military planes built by Boeing, Airbus and other manufacturers. Boeing has faced supply-chain problems at Spirit and engine suppliers, and a long strike at Spirit would have made those disruptions worse.

Shares of Spirit AeroSystems Holdings Inc. fell 1% in midday trading. Boeing shares were unchanged.

When the strike was announced last week, shares of Boeing slid 3% and Spirit tumbled 9%.

China’s defense minister, Russia’s naval chief meet for military talks

BEIJING — China’s defense minister reaffirmed the country’s military relations with Russia during a meeting Monday with the head of Russia’s Navy, the first formal military talks between the friendly neighbors since a short-lived mutiny by Russian mercenary group Wagner.

Minister of National Defense Li Shangfu told Russian Adm. Nikolai Yevmenov that China hoped for increased exchanges, joint exercises and other forms of cooperation that would take defense ties to “reach a new level,” the Chinese Defense Ministry said after the two met in Beijing.

“The Chinese and Russian navies have close exchanges and frequent interactions,” the ministry quoted Li as saying. “It is hoped that the two sides will strengthen communication at all levels, regularly organize joint training, joint patrols and joint war games.”

China operates the world’s largest navy by number of hulls and vastly outstrips Russia’s Navy in both size and technical ability. The countries’ fleets have held a series of exercises and joint maneuvers since Russia’s full-on invasion of Ukraine last year, as have their air forces.

The military cooperation embodies the Chinese and Russian governments’ informal alliance to oppose the U.S.-led liberal world order. They align their foreign policies and positions at the United Nations, where Beijing has consistently provided diplomatic cover for Moscow.

While saying it is neutral in the Ukraine war, China has stood solidly beside Russia, accusing the U.S. and NATO of provoking Moscow and of fueling the bloodshed by helping arm Ukraine.

China has refused to condemn the invasion or to refer to it as one in deference to Moscow, but also has said it would not provide Russia with military assistance or weapons for the conflict.

Since the abortive rebellion led by Wagner chief Yevgeny Prigozhin, China has said it backed Russian efforts to “stabilize the situation in the country.” The march on Moscow that Prigozhin launched and then called off last month posed the greatest challenge to President Vladimir Putin’s two decades in power.

The recent developments have very much made Russia the junior partner in the relationship with China. War-related sanctions have made the Russian economy heavily dependent on energy purchases from China and India.

Putin, Indian Prime Minister Narendra Modi and Chinese leader Xi Jinping are set to meet Tuesday at a virtual summit that will mark the Russian president’s first multilateral meeting since the Wagner revolt.

The summit of the Shanghai Cooperation Organization, a security grouping founded by Russia and China to counter Western alliances from East Asia to the Indian Ocean, is an apparent indication Putin still enjoys some support.

Marine Corps triples enlistment bonuses for cyber jobs

Marines who enlist for jobs in cyber and crypto operations will get a $15,000 signing bonus — triple the bonus announced in fall 2022.

A slate of bonuses announced in October 2022 had promised $5,000 as the cyber and crypto enlistment bonus, less than the enlistment bonuses for electronics maintenance ($8,000), chemical, biological, radiological and nuclear defense ($7,000), or music ($6,000).

But the Marine administrative message from October 2022 noted that the amounts could be tweaked “as recruiting environment conditions require.”

Now, Marines enlisting into cyber and crypto operations jobs in fiscal year 2023 will receive the heftiest enlistment bonus for any job in the Corps, once they complete training and receive their primary military occupational specialties, according to a June 26 Marine news release.

The military occupational specialties eligible for the bonus are cyberspace warfare operator (1721), communications intelligence/electronic warfare operator (2621), electronic intelligence/electronic warfare analyst (2631), cryptologic language analyst (2641) and intelligence surveillance reconnaissance systems engineer (2651), according to the October 2022 administrative message and the Corps’ index of specialties.

With cyberspace a more important domain of warfare than ever, the service has said it needs Marines who can defend against cyber attacks and launch some of their own.

US should expect cyberattacks in any struggle for Taiwan

The Marine Corps has acknowledged that it’s having trouble finding enough people to fill its cyber slots. That is one of the reasons for the Corps’ talent management initiatives, which are aimed at building a more seasoned, technologically capable force.

The Marine Corps, along with the other military services, is competing for cyber talent with the civilian sector, which often offers higher salaries, a 2022 Government Accountability Office report noted.

In fiscal year 2022, approximately 1,200 Marine recruits enlisted for the cyber jobs in question, according to Marine spokesman Maj. Jordan Cochran. The enlistment bonus that year for those jobs was $2,000.

Europe’s defense leaders push competing air defense visions

PARIS — Amid the rows of fighter aircraft, drones and helicopters at the Paris Air Show here last month, an uptick in the displays of one key class of ground-based systems stood out: the radars and launchers of missile defense.

Feted as the first “salon” hosted at Le Bourget Paris since the COVID-19 pandemic, the event was also the first such air show since Russia invaded Ukraine in February 2022. Since then, many of Kyiv’s neighbors and allies have rushed to donate air and missile defense systems and to take stock of their own inventories.

On the sidelines of the show, European officials met to discuss the continent’s varied proposals for developing new air and missile defense systems, with Germany leading a 17-nation-strong initiative to procure off-the-shelf capabilities, and France pushing for a smaller, organic approach to building up European industry.

French President Emmanuel Macron used the forum to argue against the Berlin-led Sky Shield effort, first announced by Chancellor Olaf Scholz in October 2022, which would bring together a combination of air and missile defense systems – procured from both European and non-European companies. Specifically, German officials have cited Raytheon’s Patriot system and the Arrow 3 system developed by Israel Aerospace Industries (IAI) as key components of the Sky Shield system.

Macron warned at his conference against relying on non-European systems and that an “Iron Dome”-like missile defense initiative, as Israel has it, could not work for the whole continent of Europe.

“When we talk air defense, we would be wrong to rush into capacity. The question is, first of all, strategic,” he said June 19 at the air show, speaking to representatives from 20 European nations as well as NATO.

“What Ukraine shows is we can only give Kyiv what we have and produce,” he continued. “What comes from non-European countries is less manageable. It is subject to timetables, priorities and sometimes even authorizations from third countries,” he added.

A recent report by the Washington, D.C.-based Center for Strategic and International Studies (CSIS) assessed that Europe’s militaries lack sufficient systems to counter long-range guided and unguided missiles, and while militaries possess a number of short- and medium-range systems, many are dated and originally of Soviet stock.

“Europe’s piecemeal approach to air and missile defense at the national level is no longer a sustainable strategy,” the report said.

Germany’s vision for the European Sky Shield Initiative (ESSI) would combine existing short-, medium-, and long-range air and missile defense systems coming from Europe, the United States, and Israel.

To date, 17 European nations have committed to supporting the endeavor, including Belgium, Bulgaria, the Czech Republic, Estonia, Finland, Hungary, Latvia, Lithuania, the Netherlands, Norway, Romania, Slovakia, Slovenia, Sweden and the United Kingdom. As of this article’s writing, France and Italy are unaffiliated, although German officials have asserted the door remains open for new members.

But the French president’s address at the air show left little doubt that Paris is not keen to sign onto Sky Shield. Macron used the forum to announce that the Franco-Italian-built SAMP/T missile defense system was officially delivered and operational in Ukraine, following deliveries in May. “It’s really Europe protecting Europe, and thus at the heart of our project,” he said.

He also announced a joint procurement by five European nations — France, Belgium, Cyprus, Estonia and Hungary — of Mistral 3 air defense missiles produced by weapons-maker MBDA. Some of those nations have also committed to the Sky Shield effort.

The French-led initiative will be overseen by the ministry’s procurement arm Direction Generale de l’Armement (DGA) on behalf of the partner nations. The total number of missiles to be ordered remains unconfirmed, although French defense officials stated on June 20 that it could be near 1,000.

MBDA did not respond to inquiries on how the missiles are to be divided between the participating nations or when the deliveries would begin. The production rate for the Mistral, which is currently 20 units per month, will climb by 40 percent – or 28 units per month – in 2024, a company spokesperson told Defense News in an email.

Other missile manufacturers at the show were eager for Germany’s effort to move forward. In June, lawmakers in Berlin gave the green light to approve an advance payment for the procurement of Arrow 3 components, as part of a deal that could reportedly total $4.3 billion.

In an interview with Defense News, IAI’s chief executive Boaz Levy hailed the move as “a step in the right direction” to be able to deliver the systems on time.

“Our goal currently is to finalize and have a contract signed before the end of the year to be able to deploy the first Arrow 3s to Germany by 2025,” Levy said.

He added that training would likely be a matter of “a few months,” with parts happening in Israel and Germany.

Levy advertised the system as complementary to Germany’s own defensive architecture. “The Arrow 3 will add another layer of protection and allow German forces to not only control their territory but also their allies and neighbors as it has a huge footprint,” he said.

The system boasts a two-stage interceptor capable of targeting missiles launched more than 2,000 kilometers away.

Since the news first broke last year that Germany was considering the Arrow 3 system, with the country’s air force as a key proponent, experts have debated how difficult it would be to integrate a non-NATO system with European equipment.

US State Dept. approves $440 million ammo, logistics deals for Taiwan

WASHINGTON — The U.S. State Department has approved potential defense sales to Taiwan worth an estimated $440.2 million, according to two separate statements Thursday.

The approval comes amid tension between the U.S. and China over human rights, military activities and economic practices. U.S. Secretary of State Antony Blinken traveled to Beijing this month, where he held “candid, substantive, and constructive discussions on key priorities in the bilateral relationship and on a range of global and regional issues” with Chinese President Xi Jinping, according to a State Department release.

In particular, the two nations disagree over the status of Taiwan, which China considers a rogue province and has threatened to take back by force.

The larger of the two deals, worth $332.2 million, is for 30mm ammunition and related equipment, specifically high-explosive incendiary tracer rounds, multipurpose rounds and training rounds. The principal contractors are Alliant Techsystems Operations LLC in Minnesota and General Dynamics Ordnance and Tactical Systems in Illinois.

“The proposed sale will contribute to the sustainment of the recipient’s CM34 Armored Vehicles, enhancing its ability to meet current and future threats,” the release read.

The other potential sale, worth $108 million, is for “a Cooperative Logistics Supply Support Arrangement (CLSSA) Foreign Military Sales Order II (FMSO II) to support the purchase of spare and repair parts for wheeled vehicles, weapons, and other related elements of program support,” the agency noted.

The sales serve “U.S. national, economic, and security interests by supporting the recipient’s continuing efforts to modernize its armed forces and to maintain a credible defensive capability,” a State Department spokesperson said. They also help “improve the security of the recipient and assist in maintaining political stability, military balance, and economic progress in the region.”

The U.S. has pumped billions of dollars in security assistance into Taiwan in recent years in the hopes of deterring a military assault from China.

Congress approved $3 billion for the Defense and State departments to distribute to Taiwan in the fiscal 2023 defense authorization bill. The Biden administration also provided $500 million in military aid in May under presidential drawdown authority — the same executive tool used to transfer weapons and aid to Ukraine.

U.S. officials are currently trying to unclog a nearly $19 billion logjam in assistance to Taipei.

The U.S. is required to “make available to Taiwan such defense articles and defense services in such quantity as may be necessary to enable Taiwan to maintain a sufficient self-defense capabilities,” according to the Taiwan Relations Act of 1979. The law was put into place by Congress in 1979 following the normalization of relations between the U.S. and China.

US State Dept. clears $5.6 billion sale of F-35s for Czech Republic

WASHINGTON — The U.S. State Department approved a possible sale to the Czech Republic of F-35 aircraft, munitions and related equipment worth up to $5.62 billion, according to a June 29 announcement.

The sale, according to the Defense Security Cooperation Agency, would include 24 F-35 Joint Strike Fighters.

The principal contractors will be Lockheed Martin, RTX and Boeing.

“The proposed sale will improve the Czech Republic’s defense capabilities as well as support NATO operations by guarding against modern threats and maintaining a constant presence in the region,” the agency said in the statement. It added that the move “will not alter the basic military balance in the region.”

In May, the U.S. signed a security agreement with the Czech Republic, a NATO member that has backed Ukraine in its fight against Russia.

This potential sale comes a year after the Czech Republic announced it would like to procure 24 F-35s from the United States.

“Our decision to select this option is based on the analysis by the Czech Armed Forces, which clearly articulates that only the most advanced 5th generation fighters will be able to meet mission requirements in future battlefields,” Czech Defence Minister Jana Černochová said at the time, according to a release.

A U.S. Government Accountability Office report from May found the F-35 program continues to experience schedule delays, cost increases and late deliveries. It recommended Congress consider directing the program manage engine modernization as a separate program.

The potential sale to the Czech Republic would also include 25 Pratt & Whitney F135-PW-100 engines, 70 AIM-120C-8 Advanced Medium Range Air-to-Air Missiles, and various other bombs, electronic warfare and radio capabilities, among other equipment.

The Defense Security Cooperation Agency notified Congress of this possible sale, the release said, adding that the actual dollar value could be lower “depending on final requirements, budget authority, and signed sales agreement(s), if and when concluded.”

If the sale goes through, the Czech Republic will join nine Foreign Military Sales customers to the F-35 program.