BAE Systems Investor Brief - September 2005
06 Oct 05
In this month's brief:
- Regional Aerospace Initiative launched
- NITEworks wins “Most Innovative Project” Award
- Helping NASA view Mars
- JSF achieves ‘Power-on’
- First flight of modified Harrier GR9
- Astute Combat Systems trial
- e-Capability on Land
- CNIR completes design review of JTRS
BAE Systems Contract Awards this Month
- BAE Systems Australia contract
- Upholder Support extended
- Sale of Frigates to Chile
- Stryker Imaging Modules
- Joint Strike Fighter Engine Control
- Enhance Armor on Army Combat Vehicles
- Transparent Armored Gun Shields to US Marine Corps
Integrated Systems and Partnerships
- SAMPSON evaluated by Danish Navy
- First Meteor Ground Handling and Training Missiles (GHTM) delivered
- Brimstone production reaches contracted level
- PAAMS Long Range Radar cleared for handover to Type 45
- Spearfish Submarine Launched Underwater Weapon (SLUW)
General News
Regional Aerospace Initiative launched
On Friday 9 September the Northwest Regional Development Agency (NWDA) and BAE Systems announced a formal agreement to work together with the aim of developing a strategy to sustain and maximise the North West of England's world class aerospace industry. The Right Honourable Jack Straw, Foreign Secretary and MP for Blackburn, was guest of honour at the ceremony held at BAE Systems Samlesbury.
The first project, as a result of this collaboration, is a review on the long-term site vision for Samlesbury which could lead to its development as a Regional Aerospace Business Park. This development would help to sustain/create thousands of jobs in the aerospace industry and potentially could see significant further investment in the facility.
NITEworks wins “Most Innovative Project” Award
NITEworks’ approach to Capability Through Partnering achieved recognition at the inaugural annual Institute of Electrical Engineers (IEE) Awards for Innovation in Engineering. NITEworks was the overall winner in the category for “Most Innovative Project Team”.
Helping NASA view Mars
Electronics & Integrated Solutions’ (E&IS) radiation-hardened microprocessors are aboard the Mars Reconnaissance Orbiter (MRO) that was launched from Cape Canaveral on August 12.
The space mission will help the National Aeronautics and Space Administration (NASA) examine the surface, atmosphere and subsurface of Mars. Two BAE Systems RAD750 computers on the MRO are helping to navigate the satellite on its seven-month journey to the Red Planet.
Major Programmes Updates
JSF achieves ‘Power-on’
The JSF Team has successfully achieved 'power-on' of the first JSF aircraft. The aircraft came alive with electrical power as testing of its circuits, electronic components and wiring began at Lockheed Martin's site in Fort Worth, Texas. The on-time achievement of ‘power-on’ is a significant milestone in the programme and keeps the JSF on-track for first flight in the third quarter of 2006.
First flight of modified Harrier GR9
The first flight of the first Harrier GR9 aircraft to be modified on a main operating base, took place at RAF Cottesmore on 2 September. This is a significant milestone for the GR9 programme being the first aircraft to have undergone this major upgrade in the newly established Joint Upgrade and Maintenance facility at Cottesmore.
During the 5 years that the overall Harrier GR9 programme has been running the joint Harrier team has met or exceeded every contractual milestone.
Astute Combat Systems trial
Astute’s combat system, which includes a major new sonar suite, command system and optronic visual system, has passed a week-long installed trial at Submarines’ Ash Vale integration facility.
The trial involved crew members from the Trafalgar class submarine HMS Talent, who gave operators’ feedback, and was witnessed by the MoD’s integrated project team and acceptance authority. The trial was the culmination of a programme that began in January, testing equipment individually and in various combinations before full system integration trials.
There is now a proven baseline combat system configuration to support sea trials and help to de-risk integration activity now taking place on the first of class submarine.
Astute Combat Systems trial
Astute’s combat system, which includes a major new sonar suite, command system and optronic visual system, has passed a week-long installed trial at Submarines’ Ash Vale integration facility.
The trial involved crew members from the Trafalgar class submarine HMS Talent, who gave operators’ feedback, and was witnessed by the MoD’s integrated project team and acceptance authority. The trial was the culmination of a programme that began in January, testing equipment individually and in various combinations before full system integration trials.
There is now a proven baseline combat system configuration to support sea trials and help to de-risk integration activity now taking place on the first of class submarine.
e-Capability on Land
CS&S L&IS e-Capability services have been approved as the enabling information systems capability that will support the delivery of Land System’s recent AS90 equipment support contract success.
This is the first time the services will be deployed on a land platform, allowing greater visibility of supply chain information, more informed decision making on operations and performance management and therefore the ability to drive down cost through efficiencies in through-life support.
CNIR completes design review of JTRS
E&IS’ Communications, Navigation, Identification and Reconnaissance (CNIR) business and its partner Lockheed Martin successfully completed a Preliminary Design Review (PDR) of the Airborne, Maritime and Fixed Station (AMF) component of the military’s Joint Tactical Radio Systems (JTRS) program on August 12.
Completion of the review marks a major milestone in AMF JTRS development and demonstrates the maturity and capabilities of the next-generation radio system.
The AMF JTRS will replace aging radios with new hardware and software that will allow pilots, sailors and commanders to communicate with any other friendly unit and to participate in Network-Centric Operations as a networked node. The JTRS family of radios will be fully interoperable with current and future communications systems, giving a flexible, reliable and seamlessly integrated global radio network.
BAE Systems Contract Awards this Month
BAE Systems Australia contract
BAE Systems Australia has been awarded a $36m contract by Raytheon Missile Systems of Tuscon Arizona for the continued production of Evolved Sea Sparrow Missile (ESSM) components.
This contract takes the value of the ESSM business awarded to BAE Systems to over $200m.
Upholder Support extended
Agreement on price and scope of a further one year extension to the ESM contract has been reached with the customer. The contract value of the core element is just under £5m and runs to August 2006.
Sale of Frigates to Chile
BAE Systems has been awarded a £134m contract by the UK Ministry of Defence to lead the preparation and transfer of three former Royal Navy Type 23 frigates to the Chilean Navy. The contract was signed in London on 7 September.
BAE Systems Customer Solutions and Support (CS&S) will work in partnership with the UK Defence Logistics Organisation and UK industry to prepare for transfer HMS Norfolk, HMS Marlborough and HMS Grafton. Preparation of each vessel and crew training is expected to take around eight months. The last ship will be delivered in 2008.
Stryker Imaging Modules
Electronics & Integrated Solutions’ (E&IS) has received a contract to supply TIM1500 thermal imaging modules for the Remote Weapons Station on the US Army’s Stryker vehicle. The initial production contract is valued at nearly $9.5m with delivery set for later this year.
The TIM1500 was developed at E&IS’ Infrared Imaging Systems (IRIS) facility in Lexington, Mass. It uses microbolometer-based technology for improved resolution in low-light or obscured environments.
Joint Strike Fighter Engine Control
The GE Rolls-Royce Fighter Engine Team (FET) has selected E&IS’ Platform Solutions business to develop a full-authority digital electronic control (FADEC) for the F-35 Joint Strike Fighter.
The propulsion system design uses two FADECs per engine, which govern engine fuel flow, controls variable engine geometries, and incorporates a lift fan engine and nozzle controls. Orders for the BAE Systems FADEC could total as many as 5,000 units through 2030.
Enhance Armor on Army Combat Vehicles
BAE Systems has been awarded a $31.9m delivery order from the US Army to manufacture add-on armor suites to be installed on M113 vehicles in Iraq. The contract calls for armored shields and add-on armor, including side armor and mine armor, to be installed. Deliveries are expected to begin in December 2005 and will continue through February 2006.
Transparent Armored Gun Shields to US Marine Corps
BAE Systems will provide more than 1,000 Marine Corps Transparent Armor Gun Shield kits and spares to support US Marine Corps vehicles under a contract modification valued at up to $39.9m.
The kits will be installed on Medium Tactical Vehicle Replacement Units, High Mobility Multipurpose Wheeled Vehicles and Logistics Vehicle Systems. The kits enhance survivability by providing a gunner’s protection system that enables direct vision, situational awareness and target acquisition, along with protection from small arms fire and IED fragments.
Integrated Systems and Partnerships
The composition of the business sector previously known as International Partnerships has changed significantly as a result of a series of corporate transactions. The group previously consisted of 5 European joint venture companies. As of September 2005, the sector now consists of two European Joint Ventures (MBDA and Gripen International), our minority shareholding in Saab AB and three wholly-owned businesses, two of which are UK-based (Insyte and Underwater Systems) and one based in Germany (Atlas Elektronik). The company's minority shareholding in the Anglo-Italian SELEX is also now part of the sector.
To reflect the fact that the sector is no longer exclusively European joint ventures, and to emphasise the high technology systems integration capabilities of the newly created Insyte, the group is now known as Integrated Systems and Partnerships.
Stephen Henwood (Group Managing Director) and his core team retain responsibility for the business sector, reporting into Chris Geoghegan.
SAMPSON evaluated by Danish Navy
The Danish Navy is evaluating SAMPSON as a potential Multi-Function Radar for the Air Warfare System for the Danish Patrol Ship Programme. Insyte and Thales Netherlands have been down selected to respond to formal Requests for Quotation by 31 October. Final selection of preferred supplier is planned for early 2006 with contract award by mid 2006.
First Meteor Ground Handling and Training Missiles (GHTM) delivered
The GHTMs, produced by Indra (the Spanish supplier), have been formally delivered to both Gripen and Rafale aircraft authorities, and now have the appropriate clearance to enable them to be air carried. The first flight of three Meteor GHTMs took place successfully on 7 September on Rafale.
This is the start of the Environmental Data Gathering (EDG) trials, which will continue with a fully instrumented missile, which is due for delivery in September. Further missiles still in manufacture will be delivered next year to the Eurofighter programme for similar trials on Typhoon.
Brimstone production reaches contracted level
Brimstone anti-armour seeker production output hit the contracted rate of 95 missiles per month for the first time in August. MBDA have worked closely with BAE Systems to accomplish this major achievement for the project.
Missile production at Beith continues at a high level of output with a further batch of 94 missiles delivered on 5 September 2005.
PAAMS Long Range Radar cleared for handover to Type 45
There has been further good progress made with the setting to work of the Long Range Radar (LRR) at the Type 45 Maritime Support Integration Centre (MISC) at Portsdown, near Portsmouth, over the last month.
A detailed Setting to Work Acceptance test was conducted on 6 September in the presence of the customer and the Type 45 programme team. This proved successful.
This clears the way for the LRR (Long Range Radar) to be handed over to the Type 45 programme to support combat system integration, some six months in advance of the contract.
Spearfish Submarine Launched Underwater Weapon (SLUW)
The MoD have awarded Underwater Systems a contract for a Pre-Assessment Phase study, worth just under £2m, duration 7.5 months.
