BAE Systems Investor Brief - June 2006
03 Jul 06
In This Month’s Brief:
- DoD praises BAE Systems’ RAD-Hard Modernization Effort
- Commendation Award for UOR
- DLA’s Bronze Supplier Award
- Power & Energy Systems Integration Lab Expansion
- Inauguration of a New SIL (System Integration Lab)
- New international Aerostructures company in South Africa
- Assembly of the first F-35 JSF STOVL variant
- High Tech Typhoon Helmet reaches final tests
- Autonomous Systems & Future Capability (Air)
- Successful Meteor missile firings with Gripen completed
- Harrier team move forward with availability service
- Astute and Ambush
NEW CONTRACTS AWARDED THIS MONTH
- Australian contract extension
- Wedgetail contract change
- US Air Force contract
- Ship Repair contract
- Information Technology contract
- SMARTS
- Submarine Detector contract
- Advanced Integration and Management of Maritime Sensors (AIMMS)
- Research contracts for Railgun Technology
- Contract to manufacture Iraqi Light Armored Vehicles
- Bradley Combat Systems vehicles for the US Army
- Home Station Reset contract
- RG32M Finland contract
- Canadian contract for RG31 Vehicles
- Artillery Systems Upgrade
- Additional 52 Bv206S All Terrain Vehicles to Swedish Armed Forces
GENERAL NEWS
DoD praises BAE Systems’ RAD-Hard Modernization Effort
BAE Systems Semiconductor Technology Center (STC), Manassas, Va., has received the Department of Defense’s (DoD) Certificate of Recognition for Acquisition Innovation. The award, highlighting innovative acquisition practices that improve acquisition and logistics support systems, was presented in a ceremony at the Pentagon in Arlington, Va., on 5 May.
Three government organizations and BAE Systems oversaw the modernization and upgrade of the company’s specialty semiconductor foundry in Manassas. BAE Systems led the two-phase, $121m foundry upgrade. The first, managed by the Defense Threat Reduction Agency, established the semiconductor fabrication process. The second phase, managed by the US Air Force Research Laboratory at Wright-Patterson Air Force Base, Ohio, upgraded the tools and equipment that run the processes and physically fabricate the radiation-hardened chips, used by the DoD for space systems to operate in severe radiation environments.
Commendation Award for UOR
The joint Land Systems/MoD (UK Ministry of Defence) Combat Vehicle Reconnaissance (Tracked) Urgent Operational Requirement (UOR) procurement team has won a Log (Land) Commendation Award from the MoD, presented at an Award Ceremony on 19 June.
The award recognizes the team’s expertise and professionalism in the development and delivery of an appliqué bar armor solution to meet the need to improve the protection against shaped charged attack. The team worked innovatively to ensure this essential enhancement was delivered on time, despite different and complex designs being required for each variant.
DLA’s Bronze Supplier Award
For the fifth year in a row, BAE Systems Aftermarket Spares and Services business has received a Defense Logistic Agency (DLA) best supplier award. The award is based upon performance and delivery. BAE Systems provides over 600 different repair parts to the DLA in support of BAE Systems’ tracked armored vehicles.
Power & Energy Systems Integration Lab Expansion
On May 2, BAE Systems completed the expansion of its existing Power & Energy Systems Integration Laboratory (P&E SIL). The expansion, which consists of a new test cell adjacent to the existing laboratory at the company's Santa Clara facility, exemplifies BAE Systems’ commitment to providing a state-of-the-art testing facility for the Future Combat Systems Manned Ground Vehicle Program.
The P&E SIL is part of the US Army’s Combat Hybrid Power Systems (CHPS) program, an $80 million science and technology initiative that lays the foundation for hybrid electric combat vehicles of the future. The P&E SIL uses state-of-the-art hardware to evaluate performance, system dynamics, safety, and thermal and electrical transients. The new test cell houses two 800 kW dynamometers and related equipment that will offer the ability to do steady state, transient, and steer and braking operations with the Traction Drive Subsystem or a full-up vehicle.
Inauguration of a New SIL (System Integration Lab)
A new 700 square meter building that will host all software testing, simulation and verification of the electronic architecture within the vehicle systems built by Hägglunds. In the laboratory simulating models are constructed with the same electronics and software as in Hägglunds products. The models are used for evaluating and verifying the software and electronics in or in direct connection with Hägglunds´ products. This enables starting the designing and constructing process before the hardware is produced.
New international Aerostructures company in South Africa
Saab AB of Sweden and South Africa’s Denel have agreed to create a new aerostructures company in South Africa. Agreements have been signed on the establishment, management, and shareholding structure of the new company, whose name will be announced in the near future.
Saab provides an investment of R 66-million over the first two years, ongoing skills and technology transfers, as well as management and market access. Denel will invest proportionately to its ownership.
The new aerostructures company, which will initially be 20% owned by Saab and 80% by Denel, will be responsible for delivering on Denel’s current contracts with a number of international aerospace manufacturers. Its current order book includes work on the Gripen, Airbus A400M, Agusta, and Hawk programs for the South African Air Force, as well as for Boeing.
MAJOR PROGRAMME UPDATES
Assembly of the first F-35 JSF STOVL variant
The JSF team at Samlesbury, UK, started assembly activities for the first F-35 JSF STOVL variant (BF-1) on time on 25 May. This milestone demonstrates BAE Systems ability to meet the challenging requirements of the JSF programme, where the team is required to design and engineer three aircraft variants concurrently. The on-time start of assembly activity puts the team in a good position to achieve the delivery of the first STOVL aft fuselage to Lockheed Martin in Fort Worth by the end of the year.
High Tech Typhoon Helmet reaches final tests
BAE Systems’ state-of-the-art helmet designed for Europe’s most modern fighter aircraft entered into its final phase of flight-testing on the Eurofighter Typhoon. The new Typhoon helmet — designed and developed by Avionic Systems area, part of Platform Solutions — integrates a helmet-mounted display complete with a high-resolution night vision system.
The helmet’s technology plugs into the Typhoon’s computer system and allows the pilot to direct sensors and weapons by a simple turn of the head. The pilot can cue missiles, lock a sensor onto an adversary, or target a particular point on the ground. The helmet is manufactured at E&IS’ Rochester, UK, facility.
Autonomous Systems & Future Capability (Air)
Air Systems and Insyte joined forces at the Coalition Warrior Interoperabilty Demonstration (CWID) in Portsdown recently as part of a global networked warfare exercise. BAE Systems platform and systems technology integrated seamlessly with UK Armed Forces operations.
As part of the exercise, BAE Systems demonstrated the capabilities of its Unmanned Air Vehicle (UAV) HERTI System to cost effectively deliver the capability that meets a wide range of operational needs.
The latest production configuration HERTI, the utility UAV, will make its first appearance in public at this year's Farnborough International Airshow. Air Systems will be exhibiting the full HERTI System at Farnborough where the UAV's capabilities will be explained and demonstrated to both potential customers and a wide range of other interested parties.
Successful Meteor missile firings with Gripen completed
An important stage in the Meteor missile programme was reached on 20 June 2006, when the second Air Launched Demonstration (ALD) firing took place with a Gripen new generation fighter aircraft at the FMV Vidsel test range in northern Sweden. Meteor was rail-launched from Gripen at an altitude of 23,000 ft. The missile successfully transitioned to its operation according to plan and all the objectives were fulfilled.
The Meteor programme is an international cooperation between leading aerospace companies in Europe. The Meteor programme is being led by MBDA, in partnership with Saab Bofors Dynamics, and Spain’s INMIZE.
Harrier team move forward with availability service
The Harrier team has taken a major step towards a platform availability service to support Joint Force Harrier until its out of service date of 2018. The team has received approval from the DLO to move forward with the Joint Availability Support Solution (JASS) Harrier Platform Availability Contract (HPAC) bid.
With an estimated contract value in excess of £400m, HPAC aims to deliver a full availability service and integrates the existing availability based contracts such as Joint Upgrade & Maintenance Programme (JUMP) and Joint Repair Organisation (JRO).
Astute and Ambush
The first two Astute class submarines are now side by side in Submarines’ Devonshire Dock Hall in Barrow. The completed hull form of the first of class is rapidly being progressed towards launch next year and all sections of second boat Ambush are now on the build line, with the first unit combination completed.
The second of class is generally further ahead on programme than Astute, thanks to lessons learnt, an improving build strategy, and a more mature design.
NEW CONTRACTS AWARDED THIS MONTH
Australian contract extension
CS&S Australia has been awarded a $40m (AUD) contract extension to enhance the satellite communications capability on Royal Australian Navy (RAN) ships. The Adelaide and ANZAC class frigates will be upgraded with a more enhanced communications system. This work is an extension of the successful JP2008 Phase 3E Military Satellite Communication (MILSATCOM) Project which is being managed by the Defence Materiel Organisation.
Wedgetail contract change
CS&S Australia has received a Contract change proposal worth $17m (AUD) from Boeing. The contract is the result of re-planning to the existing contract schedule.
US Air Force contract
BAE Systems Technology Solutions & Services was awarded the prime contract to provide operations, maintenance, and logistics support for the Solid State Phased Array Radar System (SSPARS), a sophisticated network of missile warning and space surveillance sites. The full value of the contract will reach $509m and extend to 12 years if all options are exercised.
Ship Repair contract
BAE Systems Ship Repair has been awarded a $28m (initial value) cost-plus-award-fee ship repair contract from the US Navy. The Naval Sea Systems Command contract is a multi-ship, multi-option (MSMO) award for selected restricted availabilities on CG 47 class ships home ported and visiting Norfolk, Va. The total value of the contract could reach $168m if all options are exercised.
Information Technology contract
BAE Systems Information Technology has received a, $10m contract from the Department of Commerce to provide infrastructure support services for the Department’s International Trade Administration (ITA) in Washington, D.C.
BAE Systems will provide infrastructure management for servers and communications systems that support approximately 70 US-based offices and 170 offices globally. BAE Systems will prepare ITA for the transformation into a hosted, performance-based, managed services contract.
SMARTS
BAE Systems Information Technology received an award for the Support to Management and Resources for Technical Services (SMARTS) Indefinite Delivery, Indefinite Quantity (IDIQ) competition. The total value of this contract to BAE Systems will be about $74m over the next five years.
Submarine Detector contract
E&IS Spectral Solutions was recently awarded a contract worth nearly $6m by the US Naval Air Warfare Center for engineering and testing of its Electro-Optic Passive Anti-Submarine Warfare System. The system can detect submerged submarines by analyzing anomalies on the ocean surface. The contract includes engineering and field testing of the first demonstration unit built under a previous contract. Work is expected to be completed by May 2007.
Advanced Integration and Management of Maritime Sensors (AIMMS)
Insyte, with partners QinetiQ, has been awarded a £2.4m contract extension to undertake research into Advanced Integration and Management of Maritime Sensors (AIMMS). This programme takes place over 22 months and utilises staff at Frimley, Broad Oak and Cowes.
This is an important programme as this type of research helps define the future requirements for the integration of maritime sensors and shapes the customer’s future needs.
Research contracts for Railgun Technology
A contract was awarded for $9.3m from the Office of Naval Research (ONR) to develop technologies and preliminary design for a 32-MJ Innovative Naval Prototype and a $5.4m contract from NSWC-Dahlgren for the design and fabrication of the US Navy’s 32MJ Laboratory Launcher.
Contract to manufacture Iraqi Light Armored Vehicles
On May 30, BAE Systems received a $180m Foreign Military Sales contract to manufacture 378 Iraqi Light Armored Vehicles from the US Army Tank-automotive and Armaments Command.
BAE Systems, as prime contractor, along with subcontractors Force Protection, Inc., based in Ladson, S.C., and Spartan Chassis, Inc., headquartered in Charlotte, Mich., will manufacture, test and provide logistics support for wheeled Iraqi Light Armored Vehicles. The 4x4 Iraqi Light Armored Vehicles are similar to the proven Cougar armored vehicles, and include a V-shaped hull designed to deflect the force of explosions away from passengers.
Bradley Combat Systems vehicles for the US Army
BAE Systems has received a $27.2m contract modification in mid-June from the US Army TACOM Life Cycle Management Command to reset 44 Bradley A2 Operation Desert Storm (ODS) vehicles returning from Iraq. When combined with $227m previously funded in March, this modification brings the total FY06 Reset contract value to $254.42m. Work on this contract will begin immediately with deliveries scheduled to be complete by May 2007.
Home Station Reset contract
BAE Systems received a $10.8m contract in June to reset key US Army combat systems at various military installations throughout the United States from the US Army TACOM Life Cycle Management Command.
The contract covers the Home Station Reset of Bradley Combat Systems vehicles, the M113A3 family of vehicles, M109A6 Paladin self-propelled howitzers and M992A2 Field Artillery Ammunition Supply Vehicles (FAASVs). Under Home Station Reset, BAE Systems personnel work on a variety of military bases and facilities to provide a cost-effective, practical solution to quickly return these critical vehicle systems to a combat ready status.
RG32M Finland contract
Land Systems OMC has received an order worth R160m for six RG32M vehicles from the Defence Force Material Command Headquarters of the Protection and Mobility section of the Finnish Army. The contract also includes logistics documentation, training and spare parts.
This is the second order for this type of vehicle from a Nordic country after the Swedish Army placed an order for 102 units at the beginning of last year.
Canadian contract for RG31 Vehicles
A follow on contract for the supply of 25 RG31’s to the Canadian army has been awarded to Land Systems OMC in association with our North American partner, General Dynamics Land Systems Canada (GDLS-C). This contract award was achieved primarily based on the successes of the previous order, which was executed by the end of May 2006.
Artillery Systems Upgrade
BAE Systems has received approval from the Swedish Parliament for an upgrade of the Swedish artillery that will allow the Swedish Defence Material Administration to continue its program with the Archer System, a 155 mm self propelled and self loading howitzer with a crew protected cockpit.
Additional 52 Bv206S All Terrain Vehicles to Swedish Armed Forces
BAE systems has received an order from the Swedish Defence Materiel Administration (FMV) for armored all terrain vehicles type Bv206S. The order amounts to 52 vehicles with an option to acquire additional vehicles. The order value is approximately £19m. With this order, the Swedish Armed Forces will hold a vehicle fleet of totally 93 Bv206S.
