Italian rocket company Avio wins $65 million War department contract
The Italian rocket company Avio announced last week that it has won a $65 million contract to build a solid-fueled motor for the U.S. Department of War.
Defense Systems and Solutions (DSS), a joint venture between Yulista Integrated Solutions, LLC (YIS) and Science and Engineering Services, LLC (SES), acting as a prime contractor for the US Department of War, selects Avio Group for the development, qualification and initial production of a solid rocket motor for air defense applications.
The contract, amounting approximately to $65 million and covering a three-year period, paves the way for a broader cooperation between the Parties, to exploit respective competences to provide US Government and NATO Allies with critical Defense Systems.
This contract award is significant in several ways. First, it signals the success of Avio’s policy in the past two years to establish itself as a U.S. military contractor, despite being a long-time Italian company. To do this it created a U.S. division, begun construction of a U.S-based manufacturing facility, and committed $500 million to its construction.
Second, Avio’s quick success also illustrates a general weakness in the American solid-rocket industry. It appears the American company that previously dominated this field of military solid-fueled rockets is Northrop Grumman, and its work in recent years has been problematic. Others might also do this work, but it appears no U.S. company has been doing it well enough to satisfy the War Department. The result has been an opportunity for Avio, and it appears it is taking advantage of it.
Finally, this success proves the rightness of the capitalism model. For almost two decades Avio built solid-fueled rockets for the European Space Agency’s commercial division, Arianespace, which controlled the marketing and sale of the rockets. That government control not only created a government middle-man that eat into the profits, it discouraged competition and innovation. Last year ESA completed transfer back to Avio, and the result has been new contracts from many new sources for the company.
The Italian rocket company Avio announced last week that it has won a $65 million contract to build a solid-fueled motor for the U.S. Department of War.
Defense Systems and Solutions (DSS), a joint venture between Yulista Integrated Solutions, LLC (YIS) and Science and Engineering Services, LLC (SES), acting as a prime contractor for the US Department of War, selects Avio Group for the development, qualification and initial production of a solid rocket motor for air defense applications.
The contract, amounting approximately to $65 million and covering a three-year period, paves the way for a broader cooperation between the Parties, to exploit respective competences to provide US Government and NATO Allies with critical Defense Systems.
This contract award is significant in several ways. First, it signals the success of Avio’s policy in the past two years to establish itself as a U.S. military contractor, despite being a long-time Italian company. To do this it created a U.S. division, begun construction of a U.S-based manufacturing facility, and committed $500 million to its construction.
Second, Avio’s quick success also illustrates a general weakness in the American solid-rocket industry. It appears the American company that previously dominated this field of military solid-fueled rockets is Northrop Grumman, and its work in recent years has been problematic. Others might also do this work, but it appears no U.S. company has been doing it well enough to satisfy the War Department. The result has been an opportunity for Avio, and it appears it is taking advantage of it.
Finally, this success proves the rightness of the capitalism model. For almost two decades Avio built solid-fueled rockets for the European Space Agency’s commercial division, Arianespace, which controlled the marketing and sale of the rockets. That government control not only created a government middle-man that eat into the profits, it discouraged competition and innovation. Last year ESA completed transfer back to Avio, and the result has been new contracts from many new sources for the company.








