BAE Systems Investor Brief - May 2006
02 Jun 06
In This Month’s Brief:
- Chairman visits RAF Marham
- Public-Private Partnership Agreement
- San Diego Shipyard first on the West Coast
- Hawk Eastern Arrow Tour
- Royal Bahraini Air Force
- Nimrod MRA4 Update
- F-35 JSF Carrier Variant gets go ahead
- Gripen for South Africa
- First of Class Submarine Launch
BAE Systems CONTRACT AWARDS THIS MONTH
- Work on USNS Bridge (T-AOE-10)
- US Army chooses E&IS to prime APKWS II
- Contract to protect Army Aircraft
- EA-6B Countermeasures Systems to US Navy
- Electronic Helicopter Controls to Royal Navy
- Order from US Navy for 67 Mk 38 Mod 2 Gun Mounts
- After Market Sales orders
- First M88A2 HERCULES to Australia
- FV430 Powertrain Conversion Sub-Contract agreed with ABRO
GENERAL NEWS
Chairman visits RAF Marham
Chairman Dick Olver has recently visited RAF Marham to see a key partnership in action. This was the second in his series of visits to main UK operating bases, reviewing the increasing focus on delivering through-life capability management through partnering as heralded in the Defence Industrial Strategy.
The Chairman was given a tour of the Combined Maintenance & Upgrade facility and taken through the RAF Marham vision, where considerable investment is being placed in facilities by both BAE Systems and the customer.
Public-Private Partnership Agreement
On 24 April 2006, BAE Systems, Red River Army Depot (RRAD) and PM Heavy Brigade Combat Team (PM-HBCT) re-signed their Letter of Intent and Public-Private Partnership agreement, and opened a world-class, Lean Power Pack assembly facility for Bradley Combat Systems during a ceremony at the depot.
The newly established Lean facility will be the site for the overhaul, remanufacturing and upgrade of the power pack for Bradley Combat Systems vehicles.
San Diego Shipyard first on the West Coast
The US Labor Department’s Occupational Safety and Health Administration (OSHA) recently announced the acceptance of BAE Systems San Diego Ship Repair into the Voluntary Protection Program (VPP) as a “Star” site, the highest designation in the program.
Only one other privately held American shipyard has earned this prestigious honor, and this is the first time a West Coast ship repair facility has earned membership.
Acceptance into the VPP is OSHA’s means of officially recognizing the outstanding efforts of employers and employees who have exceeded OSHA’s standards and achieved exemplary occupational safety and health. BAE Systems San Diego Ship Repair was awarded “Star” status after a rigorous audit of its safety procedures by the OSHA onsite review team.
MAJOR PROGRAMMES UPDATE
Hawk Eastern Arrow Tour
A UK MoD Hawk Mk128 (RT001) has recently embarked on the Eastern Arrow tour with the Red Arrows. BAE Systems is a significant sponsor of this event and is taking the opportunity to take the jet to a number of countries which have a requirement for an advanced jet trainer. The tour also enables the Hawk sales team to demonstrate how the aircraft has evolved from the original Hawk TMk1.
Royal Bahraini Air Force
The Royal Bahraini Air Force (RBAF) Air Training Wing programme continues to make good progress and has achieved a number of major milestones in recent months.
BT001 and BT002 (the first two of six Hawk Mk129s destined for Bahrain) are now in the Training Academy at Warton where they are being used to train a number of RBAF aircraft technicians.
Production and flight testing of the remaining four aircraft continues to exceed expectations with the first aircraft acceptance scheduled for June 2006. All six aircraft are due to be delivered to Bahrain by the end of 2006.
Nimrod MRA4 Update
The programme has recently passed two major life cycle management reviews, on production and support. The first Woodford-built outer wing has been removed from jig, being completed on plan and on budget./
Also the first MRA4 development aircraft, PA1, will shortly be painted in RAF livery, thereby matching the other two aircraft in the trials fleet.
F-35 JSF Carrier Variant gets go ahead
Following a recent review of the F-35 JSF Carrier Variant (CV) the design was deemed sufficiently mature by the Team JSF and JSF Programme Office participants to allow the programme to proceed to detailed design for the CV variant.
Gripen for South Africa
Since its maiden flight in November 2005 the first Gripen dual-seat aircraft (SA01), continues its successful flight test programme in Sweden, completing 12 flights and over 12 flying hours. The aircraft is scheduled to transfer to the Test & Flight Development Centre (TFDC) at Bredasdorp, South Africa in June, where it will undertake further flight testing before its public debut in early September 2006.
The first customer delivery of Gripen is scheduled for 2008, with all deliveries being completed by 2012.
First of Class Submarine Launch
The first of the new Astute class of nuclear-powered Royal Navy attack submarines will be launched at Barrow in just over one year’s time, on 8 June 2007 – seven weeks ahead of programme. Performance improvement over the last two years resulted in early completion of 10 out of 11 key 2005 objectives on Astute, adding up to 480 days early to programme.
Switchboards live, the first key 2006 objective which opened the boat for commissioning activity, was achieved 18 days early and the next, completing diesel generator trials by 29 July 2006, is on target. These achievements have given the business and the Ministry of Defence the confidence to confirm the early launch date.
BAE Systems CONTRACT AWARDS THIS MONTH
Work on USNS Bridge (T-AOE-10)
BAE Systems San Diego Ship Repair was awarded a $3.8m contract by Military Sealift Fleet Support Command (MSFSC) for the USNS Bridge (T-AOE 10) Mid-Term Availability (MTA). If all options are exercised by MSFSC, the contract could exceed $4.8m.
The 754-foot long USNS Bridge, one of four Fast Combat Support Ships, carries a crew of 160 civilians and 28 sailors. These support ships are Military Sealift Command’s largest combat logistics vessels and are part of the 36-ship Naval Fleet Auxiliary Force. The ships carry oil, ammunition and dry and refrigerated stores and are capable of rapidly replenishing Navy carrier strike groups./
US Army chooses E&IS to prime APKWS II
The US Army has selected Electronics & Integrated Solutions (E&IS) as the prime contractor for the Advanced Precision Kill Weapon System II (APKWS II) program. The company received a $96.1m system development and demonstration contract (SDD) on 26 April 2006 to provide APKWS II.
The contract is a two-year agreement with options for low-rate initial production in 2007. APKWS II adds precision targeting to currently unguided Hydra-70 2.75 inch rockets. The Hydra rocket is a widely-used munition in the US armed forces.
Contract to protect Army Aircraft
The US Army has awarded E&IS a $52m contract to provide more than 200 Common Missile Warning Systems (CMWS) to protect Army fixed- and rotary-wing aircraft against infrared guided missile threats.
The CMWS, BAE Systems’ Advanced Threat Infrared (IR) Countermeasures (ATIRCM) system, and the advanced IR countermeasures munitions flares comprise the primary components of the Army's suite of integrated infrared countermeasures. BAE Systems has been delivering CMWS systems to the Army under an indefinite delivery/indefinite quantity contract awarded in September 2004.
EA-6B Countermeasures Systems to US Navy
The US Navy has contracted with BAE Systems in Lansdale, Pa., to produce additional low-band transmitter-antenna groups for the Navy’s EA-6B Prowler electronic countermeasures aircraft.
Under the $24.3m contract with the Naval Air Systems Command, the company will provide 13 transmitter-antenna groups, each consisting of a radar and communications jammer. The equipment protects strike aircraft, ships, and ground troops by disrupting enemy radar and communications signals.
Electronic Helicopter Controls to Royal Navy
E&IS Avionic Systems business area has been awarded a $32m contract by AgustaWestland to develop a digital flight control computer for the UK Royal Navy’s EH101 Merlin helicopter fleet.
The Helicopter Electro Actuation Technology (HEAT) system will be the first electromechanical fly-by-wire system installed on a helicopter, and is being designed in a joint effort by AgustaWestland, BAE Systems, and Claverham. HEAT will replace the existing hydro-mechanical rotor control system on the EH101.
Order from US Navy for 67 Mk 38 Mod 2 Gun Mounts
On 8 May 2006, BAE Systems was awarded an order from the US Navy to deliver 67, Mk 38 Mod 2 gun mounts to go aboard cruisers, destroyers and Landing Ship Transport Dock (LPD) ships.
The order releases $39m from the current $395m contract. BAE Systems has teamed with Rafael Armament Development Authority, Ltd., for the development and production of the Mk 38 Mod 2. The minor caliber gun system is assembled and tested at BAE Systems’ Louisville site.
After Market Sales orders
BAE Systems Aftermarket Spares and Services business received an order of $3.2m for Bradley Power Take Off units and an order of $1.6m for a vehicle conversion effort at FT Stewart, GA.
First M88A2 HERCULES to Australia
BAE Systems presented the first of seven M88A2 HERCULES Improved Recovery Vehicles to the Australian Army at a hand-off ceremony held in the York facility on 12 May 2006.
Under a $22m contract awarded in mid-2005 by the US Army Tank-automotive & Armaments Command, BAE Systems will deliver the vehicles to the Australian Army by the end of this year.
HERCULES is a battle proven recovery system that enables safe, single-vehicle recovery of today's 70-ton vehicles, providing improved towing, winching and hoisting over older recovery systems. HERCULES will complement the Australian Army's newly purchased M1A1 AIM main battle tanks.
FV430 Powertrain Conversion Sub-Contract agreed with ABRO
As part of the FV430 powertrain conversion contract, BAE Systems Land Systems and ABRO have agreed a sub-contract to undertake the upgrade activity at their repair and overhaul facility in Bovington. This agreement is significant in cementing the partnering relationship between the two parties to ensure timely delivery of the conversion contract programme.
