DTN News: U.S. Department of Defense Contracts Dated May 23, 2012

Asian Defense News: DTN News: U.S. Department of Defense Contracts Dated May 23, 2012

 Source: U.S. DoD issued No.  418-12 May 23, 2012

(NSI News Source Info) TORONTO, Canada - May 23, 2012: U.S. Department of Defense, Office of the Assistant Secretary of Defense (Public Affairs) Contracts issued  May 23, 2012   are undermentioned;

CONTRACTS

NAVY

            Softchoice, McLean, Va., is being awarded a firm-fixed-price blanket purchase agreement to procure Microsoft brand name software licenses and software support, known as software assurance (SA), through 2015 for the Department of the Navy.  The licenses and SA must be compatible and interoperable with existing Department of the Navy hardware and technology equipment.  The maximum dollar value, including the base period and two option periods is $700,000,000.  Work will be performed in McLean, Va., and is expected to be completed May 31, 2015.  Contract funds will not expire at the end of the current fiscal year.  This agreement was solicited via General Services Administration eBuy electronic request and five offers were received.  The Marine Corps Systems Command, Quantico, Va., is the contracting activity (M67854-12-A-4701). 

            Sikorsky Aircraft Corp., Stratford, Conn., is being awarded a $9,064,199 modification to a previously awarded firm-fixed-price contract (N00383-06-D-003F) for the incorporation of two Naval Air Systems Command approved engineering change proposals supporting the H-53 helicopter:  Dynamic Component Change No. 97 swashplate, and Dynamic Component Change No. 94 gearbox.  Work for the nose gearboxes will be performed at the Fleet Readiness Center (FRC) East, Cherry Point, N.C. (70 percent), and Sikorsky Aircraft, Stratford, Conn. (30 percent).  Work for the swashplates will be performed at FRC East, Cherry Point, N.C.  All work is expected to be completed by February 2016.  The applicable Navy Working Capital funds will not expire before the end of the current fiscal year.  This contract was not competitively procured.  The NAVSUP Weapon Systems Support, Philadelphia, Pa., is the contracting activity. 

U.S. TRANSPORTATION COMMAND

            Evergreen Helicopters of Alaska, Anchorage, Alaska, is being awarded a $15,903,080 option year modification for fixed wing aircraft, personnel, equipment, tools, material, maintenance and supervision necessary to perform passenger and cargo air transportation services.  Work will be performed in Afghanistan and the option will start June 1, 2012, to be completed by May 31, 2013.  This contract was a competitive acquisition with seven offers received. U.S. Transportation Command Directorate of Acquisition, Scott Air Force Base, Ill., is the contracting activity (HTC711-10-D-R017).

*Link for This article compiled by Roger Smith from reliable sources U.S. DoD issued No.  418-12 May 23, 2012
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DTN News - AFGHAN WAR NEWS: U.S.-Pakistan Military Negotiations ‘Very Positive’ According Gen. John R. Allen

Asian Defense News: DTN News - AFGHAN WAR NEWS: U.S.-Pakistan Military Negotiations ‘Very Positive’ According Gen. John R. Allen
Source: DTN News - - This article compiled by Roger Smith from reliable sources By Karen Parrish - American Forces Press Service
(NSI News Source Info) TORONTO, Canada - May 23, 2012: Military-to-military talks between the U.S. and Pakistan, which recently resumed after a lapse, are going well, the commander of NATO and U.S. forces in Afghanistan said today.

Marine Corps Gen. John R. Allen, International Security Assistance Force commander, acknowledged during a Pentagon press briefing that the issue of reopening Pakistani ground supply routes to NATO is still unresolved. Pakistan closed the routes after a late-November 2011 cross-border attack by NATO forces near a border coordination center in Afghanistan’s Kunar province accidently killed 24 Pakistani soldiers.

“I have recently led a team to Islamabad to renew our conversation with the Pakistani military,” Allen said, noting the participants had “a very positive conversation about taking steps and measures necessary to prevent a recurrence of the events of 25 and 26 November.”

He said Lt. Gen. Shir Mohammad Karimi, general staff chief of operations for the Afghan National Army, also traveled to Islamabad for the two-day military talks with Gen. Ashfaq Parvez Kayani, the Pakistani army chief of staff.

“We committed ourselves to recurring meetings … with the idea of creating a constructive long-term relationship between Afghanistan and Pakistan,” Allen said.

Allen noted Pakistan has many challenges along its border with Afghanistan. Pakistan’s forces are also fighting an insurgency, he said, and they have taken more casualties in the last two years than the U.S. has in 10 years of combat in Afghanistan.

“Where we can find intersection of our interests, we should leverage those,” the general said. “And I think we're to the point where that conversation can occur.”

Since the ground supply routes through Pakistan into Afghanistan closed in November, Allen said, military cargo has moved through the northern distribution network, a set of logistic arrangements connecting Baltic and Caspian ports with Afghanistan via Russia, Central Asia and the Caucasus.

Immediately after Pakistan closed off the ground supple routes, the U.S. Air Force and U.S. Transportation Command ramped up transport schedules to maintain the flow of supplies, Allen said.

“One of the great resources of the United States is the United States Air Force,” the Marine Corps general noted. The United States’ strategic logistics capabilities ensured the campaign and the supply chain supporting it continued uninterrupted, he added.

Supply stocks in Afghanistan are greater today than they were November 25, Allen said. At no point, he said, had gasoline dropped to less than a 30-day supply, the lowest level any supply stock had reached since the closure.

Allen noted the current routes are about twice as expensive and take more time than did supplies arriving through the ground route from Pakistan.

Allen emphasized he is not involved in government or policy discussions with Pakistan. But, he said, reestablishing communications among U.S., Pakistani and Afghan military leaders is “a very positive step” toward reopening supply routes.

“It is a negotiation, and negotiations take time, so I can't predict what the outcome will be and how soon that will be,” he said.

*Link for This article compiled by Roger Smith from reliable sources By Karen Parrish - American Forces Press Service
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DTN News - DEFENSE NEWS: Boeing Delivers 3rd Peace Eye AEW&C Aircraft To Republic Of Korea Air Force

Asian Defense News: DTN News - DEFENSE NEWS: Boeing Delivers 3rd Peace Eye AEW&C Aircraft To Republic Of Korea Air Force
*Airborne battle management aircraft is 2nd to be modified by Korea Aerospace Industries
Source: DTN News - - This article compiled by Roger Smith from reliable sources Boeing
(NSI News Source Info) TORONTO, Canada - May 22, 2012: Boeing [NYSE: BA] delivered the third Peace Eye 737 Airborne Early Warning and Control (AEW&C) aircraft to the Republic of Korea Air Force (ROKAF) on May 16.

The aircraft was delivered ahead of schedule to ROKAF Base Gimhae, the main operating base for the Peace Eye fleet. Peace Eye No. 3 is the second aircraft in the fleet to be modified into an AEW&C configuration by Korea Aerospace Industries (KAI) at its facility in Sacheon.

"A key factor in our continuing success in delivering Peace Eye's powerful capability is the close working relationship that exists among the Boeing team, the ROKAF, the Defense Acquisition Program Administration, and our Korean and U.S. industry partners," said Randy Price, Boeing Peace Eye program manager.

The last Peace Eye aircraft being modified by KAI will be delivered to the ROKAF by the end of this year.

The Peace Eye program includes four 737 AEW&C aircraft, plus ground support segments for mission crew training, mission support and system maintenance. Five AEW&C aircraft are in operation for the government of Australia. Turkey's first AEW&C aircraft is on plan for delivery later this year.

Based on the Boeing Next-Generation 737-700 commercial airplane, the 737 AEW&C aircraft is designed to provide airborne-battle-management capability with an advanced multirole electronically scanned radar and state-of-the-art mission crew consoles that are able to track airborne and maritime targets simultaneously. The mission crew can direct offensive and defensive forces while maintaining continuous surveillance of the operational area.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 61,000 employees worldwide. Follow us on Twitter: @BoeingDefense.

Contact:

Dave Sloan
Boeing Defense, Space & Security
+1 253-657-8008
david.a.sloan@boeing.com

Chang Koh
Boeing Korea
+82 2 2075 4815
changgyun.koh@boeing.com

*Link for This article compiled by Roger Smith from reliable sources Boeing 
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DTN News: U.S. Department of Defense Contracts Dated May 21 + 22, 2012

Asian Defense News: DTN News: U.S. Department of Defense Contracts Dated May 21 + 22, 2012

 Source: U.S. DoD issued No. 405-12 May 21, 2012 + 413-12 May 22, 2012

(NSI News Source Info) TORONTO, Canada - May 22, 2012: U.S. Department of Defense, Office of the Assistant Secretary of Defense (Public Affairs) Contracts issued  May 21 + 22, 2012   are undermentioned;

No. 405-12 May 21, 2012

CONTRACTS

DEFENSE LOGISTICS AGENCY

            Charleston Aluminum, L.L.C., Gaston, S.C.*, was issued a modification exercising the first option year on contract SPM8E5-10-D-0012/P00008.  The award is a fixed-price with economic price adjustment, indefinite-delivery/indefinite-quantity contract with a maximum $49,587,000 for heat-treated aluminum sheet and plate materials.  There are no other locations of performance.  Using services are Army, Navy, Air Force, Marine Corps and federal civilian agencies.  There were five responses to the Web solicitation.  Type of appropriation is fiscal 2012 Defense Working Capital Funds.  The date of performance completion is May 31, 2013.  The Defense Logistics Agency Troop Support, Philadelphia, Pa., is the contracting activity.

            Ami Metals, Inc., Brentwood, Tenn., was issued a modification exercising the first option year on contract SPM8E5-10-D-0011/P00009.  The award is a fixed-price with economic price adjustment, indefinite-delivery/indefinite-quantity contract with a maximum $49,206,000 for heat-treated aluminum sheet and plate materials.  There are no other locations of performance.  Using services are Army, Navy, Air Force, Marine Corps and federal civilian agencies.  There were five responses to the Web solicitation.  Type of appropriation is fiscal 2012 Defense Working Capital Funds.  The date of performance completion is May 31, 2013.  The Defense Logistics Agency Troop Support, Philadelphia, Pa., is the contracting activity.

            TW Metals, Carol Stream, Ill., was issued a modification exercising the first option year on contract SPM8E5-10-D-0010/P00017.  The award is a fixed-price with economic price adjustment, indefinite-delivery/indefinite-quantity contract with a maximum $43,700,000 for heat-treated aluminum sheet and plate materials.  There are no other locations of performance.  Using services are Army, Navy, Air Force, Marine Corps and federal civilian agencies.  There were five responses to the Web solicitation.  Type of appropriation is fiscal 2012 Defense Working Capital Funds.  The date of performance completion is May 31, 2013.  The Defense Logistics Agency Troop Support, Philadelphia, Pa., is the contracting activity.

NAVY

            Lockheed Martin Corp., Missiles and Fire Control, Orlando, Fla., is being awarded a $47,586,369 firm-fixed-price contract for procurement of 18 AN/AAQ-30 target sight systems and data.  The target sight systemprovides target identification and tracking, passive targeting for integrated weapons, including Hellfire missiles, and a laser designation capability supporting friendly laser-guided weapons.  Work will be performed in Orlando, Fla. (90 percent), and Ocala, Fla. (10 percent), and is expected to complete by October 2015.  Contract funds in the amount of $2,643,687 will expire at the end of the current fiscal year.  This non-commercial contract was issued on a sole-source basis, as Lockheed Martin is the only vendor able to provide AN/AAQ-30 in time to meet the government-required schedule.  Naval Surface Warfare Center, Crane Division, Crane, Ind., is the contracting activity (N00164-12-C-JQ26).

            Lockheed Martin Corp., Mission Systems and Sensors (MS2), Manassas, Va., is being awarded a $33,745,287 modification to previously awarded contract (N00024-11-C-6294) for development and production of the Acoustic Rapid Commercial-Off-The-Shelf Insertion (ARCI) systems and common acoustics processing for technology insertions 12 through 14 for the United States’ submarine fleet and potential foreign military sales.  ARCI is a sonar system that integrates and improves towed array, hull array, sphere array, and other ship sensor processing, through rapid insertion of commercial-off-the-shelf -based hardware and software.  This modification will purchase technology insertion system upgrades, including pre-cable kits, for 15 submarines.  Work will be performed in Manassas, Va. (60 percent), and Clearwater, Fla. (40 percent), and is expected to complete by December 2013.  Contract funds will not expire at the end of the current fiscal year.  Naval Sea Systems Command, Washington, D.C., is the contracting activity.

            The Boeing Co., St. Louis, Mo., is being awarded an $11,084,479 firm-fixed-price contract for the procurement of the Harpoon and Standoff Land Attack Missile-Expanded Response weapons system components.  This contract combines purchases in support of the U.S. Navy ($4,342,034; 39.2 percent) and, under the Foreign Military Sales Program, the governments of:  Australia ($2,877,199; 26 percent); Turkey ($1,126,694; 10.2 percent); Japan ($916,182; 8.3 percent); Korea ($537,786; 4.9 percent); Saudi Arabia ($313,751; 2.8 percent); Pakistan ($246,452; 2.2 percent); Canada ($241,015; 2.1 percent); United Kingdom ($237,005; 2.1 percent); Kuwait ($79,668; 0.7 percent); United Arab Emirates  ($67,431; 0.6 percent); India ($59,428; 0.5 percent); and Egypt ($39,834; 0.4 percent).  Work will be performed in St. Louis, Mo., and is expected to be completed in August 2013.  Contract funds will not expire at the end of the current fiscal year.  This contract was not competitively procured pursuant to FAR 6.302-1.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-12-C-0058).

            The Boeing Co., St. Louis, Mo., is being awarded a $7,800,000 delivery order against a previously issued basic ordering agreement (N00019-11-G-0001) for a software license agreement for Advanced Harpoon Weapon Control System software for the government of Korea under the Foreign Military Sales Program.  This provides for the integration into the Encapsulated Harpoon Command Launch System III hardware.  Work will be performed in St. Louis, Mo., and is expected to be completed in June 2012.  Contract funds will not expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.  

            Electric Boat Corp., Groton, Conn., is being awarded a $6,788,520 cost-plus-fixed-fee modification to previously awarded contract (N00024-10-C-2118) to obtain vendor services to design and procure the common controller for electric actuation.   The contractor will design, manufacture, and qualify test two configurations of the “common” controller to support electric actuation.   The work will be performed in Groton, Conn., and is scheduled to be completed by January 2016.  Contract funds in the amount of $580,000 will expire at the end of the current fiscal year.  Supervisor of Shipbuilding Conversion and Repair, Groton, Conn., is the contracting activity.

*Small business

No. 413-12 May 22, 2012

CONTRACTS

DEFENSE LOGISTICS AGENCY

            Oceanic Medical Products, Inc., Atchison, Kan.*, was awarded a fixed-price with economic price adjustment, indefinite-delivery/indefinite-quantity contract with a maximum $50,000,000 for anesthesia systems and related components and accessories.  There are no other locations of performance.  Using services are Army, Navy, Air Force, Marine Corps and federal civilian agencies.  There were 50 solicitations with 25 responses.  Type of appropriation is fiscal 2012 Defense Working Capital Funds.  The date of performance completion is May 23, 2016.  The Defense Logistics Agency Troop Support, Philadelphia, Pa., is the contracting activity (SPM200-06-D-8203).


            Genesis Vision, Inc., Rochester, N.Y.*, was issued a modification exercising the second option year on contract SPM2DE-10-D-7545/P00003.  The award is a fixed-price with economic price adjustment, indefinite-delivery/indefinite-quantity contract with a maximum $12,061,914 for various optical frames and accessories.  There are no other locations of performance.  Using services are Army, Navy, Air Force, Marine Corps and federal civilian agencies.  There were four responses to the Web solicitation.  Type of appropriation is fiscal 2011 Defense Working Capital Funds.  The date of performance completion is June 2, 2013.  The the Defense Logistics Agency Troop Support, Philadelphia, Pa., is the contracting activity.


*Small business


*Link for This article compiled by Roger Smith from reliable sources U.S. DoD issued No. 405-12 May 21, 2012 + 413-12 May 22, 2012
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DTN News - CHINESE COUNTERFEIT PRODUCTS: China Fake Parts 'Used In US Military Equipment'

Asian Defense News: DTN News - CHINESE COUNTERFEIT PRODUCTS: China Fake Parts 'Used In US Military Equipment'
Source: DTN News - - This article compiled by Roger Smith from reliable sources BBC World News
(NSI News Source Info) TORONTO, Canada - May 22, 2012: Vast numbers of counterfeit Chinese electronic parts are being used in US military equipment, a key Senate committee has reported.

A year-long probe found 1,800 cases of fake parts in US military aircraft, the Senate Armed Services Committee said.

More than 70% of an estimated one million suspect parts were traced back to China, the report said.

It blamed weaknesses in the US supply chain, and China's failure to curb the counterfeit market.

The failure of a key part could pose safety and national security risks and lead to higher costs for the Pentagon, the committee said.

US servicemen rely on a variety of "small, incredibly sophisticated electronic components" found in night vision systems, radios and GPS devices and the failure of a single part could put a soldier at risk, the report said.

It highlighted suspect counterfeit parts in SH-60B helicopters used by the Navy, in C-130J and C-27J cargo planes and in the Navy's P-8A Poseidon plane.

After China, the UK and Canada were found to be the next-largest source countries for fake parts.

'Avoiding scrutiny'

The committee criticised China for failing to shut down counterfeit manufacturers and said that committee staff wanting to travel to China for the investigation had not been granted visas.

"Counterfeit electronic parts are sold openly in public markets in China," the report said.

"Rather than acknowledging the problem and moving aggressively to shut down counterfeiters, the Chinese government has tried to avoid scrutiny," it added.

But the report said that use of Department of Defense programmes such as the Government-Industry Data Exchange Program (GIDEP), designed to log suspected fake parts, were "woefully lacking".

Between 2009 and 2010 the GIDEP only received 217 reports relating to suspected fake counterfeit components, the majority of which were filed by just six companies, it said. Only 13 reports came from government agencies.

The report also said that in some cases the US defence department had reimbursed contractors for the costs they incurred as a result of their failure to spot fake components in their own supply chain - giving companies no incentive to weed out counterfeits themselves.

But it praised the National Defense Authorization Act, signed into law on 31 December 2011 by President Barack Obama, which aims to stop counterfeit parts from entering the country and would cut down on sourcing components from unknown suppliers.

The report's focus on China comes as the US is beginning the task of "pivoting" its defence strategy towards the Asia-Pacific region.

The Pentagon is also preparing to absorb about $450bn (£285bn) of cuts over the next decade.

But it could face cutbacks of a further $500bn if mandatory across-the-board spending cuts come into effect at the end of 2012, after Congress failed to reach a deficit reduction plan last year.

*Link for This article compiled by Roger Smith from reliable sources BBC World News
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DTN News - UAE DEFENSE NEWS: Boeing Delivers 5th C-17 to UAE Air Force And Air Defence

Asian Defense News: DTN News - UAE DEFENSE NEWS: Boeing Delivers 5th C-17 to UAE Air Force And Air Defence
 *C-17 airlifters delivered to United Arab Emirates in 2011; 6th scheduled for delivery in 2012
Source: DTN News - - This article compiled by Roger Smith from reliable sources Boeing
(NSI News Source Info) TORONTO, Canada - May 22, 2012: Boeing [NYSE: BA] delivered a fifth C-17 Globemaster III airlifter to the United Arab Emirates (UAE) Air Force and Air Defence earlier this month. The UAE accepted delivery of four C-17s in 2011 and has one more airlifter on order for delivery later this year.

"It's amazing to see all that the UAE has accomplished with its fleet of C-17s in such a short time, including standing up a new base; qualifying three aircraft commanders and four mission-ready loadmasters; and conducting humanitarian aid and peacekeeping missions," said Bob Ciesla, Boeing Airlift vice president and C-17 program manager. 

"We're proud to be a part of the UAE Air Force and Air Defence mission long after each C-17 is delivered. With a mission-capable rate above 90 percent, UAE C-17s are ready to save lives and deliver hope whenever they are needed."

The UAE, Boeing's sixth international C-17 customer, received its first airlifter on May 10, 2011. Since that time, the UAE Air Force and Air Defence C-17 fleet has amassed more than 2,000 flight hours and carried more than 3,000 passengers and nearly 4 million pounds of cargo.

As a part of the worldwide C-17 "virtual fleet," UAE C-17s are supported through the Boeing C-17 Globemaster III Integrated Sustainment Program (GISP), a Performance-Based Logistics agreement. The GISP arrangement provides the highest airlift mission-capable rate at one of the lowest costs per flying hour.

Boeing has delivered 243 C-17s worldwide, including 216 to the U.S. Air Force active duty, Guard and Reserve units. A total of 27 C-17s have been delivered to Australia, Canada, Qatar, the United Arab Emirates, the United Kingdom, and the 12-member Strategic Airlift Capability initiative of NATO and Partnership for Peace nations. India has 10 C-17s on order for delivery in 2013 and 2014.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 61,000 employees worldwide. Follow us on Twitter: @BoeingDefense.

Contact:

Cindy Anderson
Boeing Defense, Space & Security
+1 562-253-5818
cindy.a.anderson@boeing.com

Fakher Daghestani
Middle East Communications
Boeing International Corporation
Mobile: +971 506 254855
fakher.a.daghestani@boeing.com

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DTN News - NATO SUMMIT IN CHICAGO: Barack Obama Snubs Asif Ali Zardari At NATO

Asian Defense News: DTN News - NATO SUMMIT IN CHICAGO:  Barack Obama Snubs Asif Ali Zardari At NATO
*U.S. has dole out over $100 billion to Pakistan since 1950 with zero gain and multifaceted problems
>Five Decades of Aid to Pakistan, 1950 - 2001
It is not much of an exaggeration to state that since independence in 1947, Pakistan has been an aid-dependent nation. Some estimates suggest that the gross disbursement of overseas development assistance to Pakistan from 1960 to 2002 (in 2001 prices) was $73.1 billion, from both bilateral and multilateral sources.
Almost 30 percent of this official development assistance came in the form of bilateral aid from the United States, the largest single bilateral donor by far.
>U.S. Financial aid to Pakistan since 9/11
Between 2002-2010, Pakistan received approximately 18 billion in military and economic aid from the United States. In February 2010, the Obama administration requested an additional 3 billion in aid, for a total of $20.7 billion.
Western officials have claimed nearly 70% ( roughly $3.4 billion) of the aid given to the Military assistance has been misspent in 2002-2007 and used to over Civilian Deficit. However U.S-Pakistani relationship has been a transactional based and U.S military aid to Pakistan and aid conditions has been shrouded in secrecy for several years until recently . In a startling revelation, an update released says that US funding to Pakistan has more than doubled since President Obama took office in 2009. In fiscal 2010 US gave nearly $4.3 billion to Pakistan, up from about $3 billion in 2009 and $2 billion in 2008. The US fiscal year runs from October to September.
>As of May 21, 2012 - Is Pakistan an opportunistic or a greedy country
In an unmistakable snub, President Barack Obama left Pakistan off a list of nations he thanked Monday for help getting war supplies into Afghanistan and refused to meet Mr Zardari yesterday in the midst of Pakistan's refusal to compromise over increasing the fee for trucks to pass through its territory to Afghanistan from $US250 ($253) to $US5000 almost two-thousand percent increase. Now, Pakistan has lost its credibility globally as a reliable or a dependable ally to fight or to stamp out terrorism and militancy.
Source: DTN News - - This article compiled by Roger Smith from reliable sources BY: BRAD NORINGTON, WASHINGTON CORRESPONDENT From: The Australian
(NSI News Source Info) TORONTO, Canada - May 21, 2012: BARACK Obama has snubbed Pakistani President Asif Ali Zardari despite inviting him to a NATO summit in Chicago, as a bitter dispute rages over supply routes that could disrupt the planned US troop withdrawal from Afghanistan.

The US President refused to meet Mr Zardari yesterday in the midst of Pakistan's refusal to compromise over increasing the fee for trucks to pass through its territory to Afghanistan from $US250 ($253) to $US5000.

Pakistan closed its borders and then demanded the huge price rise for moving US supply trucks through its territory after US air strikes killed 24 Pakistani soldiers in November.

Mr Zardari was invited to the NATO talks at late notice and US officials appear to have hoped a settlement of the transportation issue could have been reached before his arrival.

Instead, the conflict worsened yesterday.

It was made clear that Mr Obama was unwilling to meet Mr Zardari, and the diplomatic task was handed to US Secretary of State Hillary Clinton.

The dispute with Pakistan has forced unacceptable costs on the US as trucks transporting up to 40 per cent of equipment to and from Afghanistan have been forced to use a longer route through Russia, Kazakhstan and Uzbekistan.

The US insists strikes that killed Pakistani soldiers were accidental because the troops concerned appeared hostile.

It has also refused to issue a full apology, which has been demanded by Pakistan.

The rise in Pakistan's fee per truck is not only considered unreasonable retaliation but also a potential stumbling block as Washington draws up plans for withdrawing large amounts of military equipment from Afghanistan for a planned troop withdrawal by the end of 2014.

The argument over transportation fees is only the latest flare-up in relations. It follows US doubts about Pakistan's loyalty and its alleged double-dealing with the Taliban and insurgent groups considered terrorists.

The US still suspects senior Pakistani intelligence officials knew al-Qa'ida leader Osama bin Laden was hiding in a town with one of the country's largest military barracks for five years when Mr Obama ordered a commando raid on his hideout last year.

Meanwhile, the Pakistani government resents the unauthorised raid on its territory.

The US President yesterday met Afghanistan President Hamid Karzai at the NATO summit in Chicago.

The pair discussed plans to wind down the war and hand security to local forces while maintaining an American military commitment for a decade after the official 2014 withdrawal.

Using words similar to those for Australian Prime Minister Julia Gillard, Mr Karzai thanked Mr Obama for "taxpayers' money" used to support his country as the US pledges continued support for an Afghan military after the official foreign troop withdrawal at a cost of $US4 billion a year.

Under the withdrawal schedule, local Afghan forces are meant to be responsible for the country's security by mid-next year.

All combat troops are to be withdrawn by the end of 2014.

Administration officials said yesterday that the invitation to Chicago for Mr Zardari had not come from Mr Obama personally but through NATO.

*Link for This article compiled by Roger Smith from reliable sources BY: BRAD NORINGTON, WASHINGTON CORRESPONDENT From: The Australian
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