BAE Systems Investor Brief - October 2006
03 Nov 06
In This Month’s Brief:
- BAE Systems acquires high tech company
- Large Employer of the Year award
- BAE Systems unveils new Mine-Protected Vehicle
- Bound for Bahrain
- F-35 Lightning II manufacturing continues at a pace
- 100th Typhoon
- First ever transatlantic flight for Nimrod MRA4
- Production contract for Hawk AJT
- South Africa’s Gripen
- Harrier GR9 enters service
- NLOS Cannon Firing Platform
- Warrior Concept Phase contract award
- SAMPSON on track for HMS Daring
- Iron Duke to be refitted at FSL
- TSS wins $132m COSMIC contract
- Contract to provide sustainment services for US Navy aircraft
- US Navy facilities Operations & Maintenance contract
- Communications-electronics life cycle support
- E&IS to develop wireless technology for simultaneous communication
- E&IS to provide precise threat ID to US Army
- Contract for Transparent Armored Gun Shields
GENERAL NEWS
BAE Systems acquires high tech company
On 16 October, BAE Systems Inc. completed the $8.7m acquisition of National Sensor Systems. The Acton, Massachusetts-based company has expertise in advanced electro-optical systems for aerospace and defense applications. Systems include stabilized gimbals, turrets, laser communications, and airborne optical systems.
Large Employer of the Year award
Naval Ships has been awarded the prestigious Large Employer of the Year award in the Scottish Enterprise's Modern Apprenticeship Awards. This national award was presented by Deputy Minister for Education and Young People, Robert Brown, at a ceremony in Edinburgh on Thursday, 12 October 2006.
This achievement is a significant endorsement of Naval Ships' ongoing commitment to invest in education, training and the long term future of warship building on the Clyde.
BAE Systems unveils new Mine-Protected Vehicle
BAE Systems has leveraged the combined strengths of its global land business to create its new 6x6 Mine-Protected Vehicle, the RG33L. The vehicle was unveiled recently at the largest US industry event showcasing technologies and capabilities for the US Army.
Drawing on decades of extensive expertise in developing, building, fielding and supporting mine protected vehicles and high-survivability combat vehicles, BAE Systems featured its RG33L at the Association of the US Army Annual Meeting & Exhibition in Washington, DC on 9-11 October.
MAJOR PROGRAMME UPDATES
Bound for Bahrain
On Friday 13 October, the first two of a contracted six Hawk Mk129s left Warton, Lancashire, bound for Bahrain. BAE Systems is supplying six Hawk advanced jet trainers along with a package of equipment, support and training as part of an integrated flying training system which will enable the Royal Bahraini Air Force (RBAF) to improve the number and quality of its frontline pilots by developing an indigenous aviation training capability.
The Bahraini Mk 129 aircraft are among the first production Hawks to have the new BAE Systems operational flight programme integrated with the new FADEC-equipped (full authority digital engine control) Mk951 Rolls-Royce Adour engine.
F-35 Lightning II manufacturing continues at a pace
The BAE Systems F-35 team has started assembly of the vertical tails for the first short take off and vertical landing (STOVL) aircraft (BF-1). There are currently three STOVL aircraft in various stages of assembly at Samlesbury, with the team working to a schedule that requires a new aircraft to start assembly every four weeks.
100th Typhoon
The 100th Eurofighter Typhoon (BS021) to be delivered across Europe has been handed over to the Royal Air Force. The aircraft, the first to bear 11 Squadron markings, was flown from Warton to RAF Coningsby on 10 October by Group Captain Bob Judson, Coningsby Station Commander.
Delivery of Typhoon number BS022 followed hot on the heels of BS021 to become the 35th aircraft to join the RAF fleet.
First ever transatlantic flight for Nimrod MRA4
Nimrod MRA4 undertook its first ever transatlantic flight in late September when it flew to the United States Eglin Air Force base in Florida, home to the McKinley Climatic Laboratory, the largest facility of its kind in the world. The second development aircraft, PA2, will remain there until mid-November, during which it will be subjected to a whole series of environmental tests.
The purpose of these is to demonstrate to the UK MoD the maturity and reliability of the MRA4 at extremes of temperature, ranging from -40 degrees centigrade to +45 degrees.
Production contract for Hawk AJT
The production contract for the UK MoD’s new Hawk Advanced Jet Trainer was announced on 19 October by Lord Drayson, Minister of State for Defence Procurement.
The contract gives the go ahead for 28 Hawk Mk128 aircraft to be produced for training future fast jet pilots for next generation combat aircraft such as the Typhoon and the F-35 Lightning II. Work on the production of these aircraft has already started and we look forward to the delivery of the first aircraft to the RAF in 2008. The contract also includes support including spares and ground equipment which will provide an important order intake for BAE Systems CS&S business.
South Africa’s Gripen
South Africa’s first Gripen new generation fighter aircraft made its South African public debut at the African Aerospace & Defence (AAD) 2006 exhibition held in Cape Town. This two-seat version of the Gripen fighter aircraft (SA01), wearing South African Air Force (SAAF) livery and bearing the South African flag, arrived in South Africa in July 2006, and has been based at the Test Flight Development Centre (TFDC) near Bredasdorp in the Southern Cape, where it has been prepared for a thorough and intensive South African flight test programme.
When completed, this programme will lead directly to the delivery of the first Gripen to South Africa in early 2008.
Harrier GR9 enters service
The Harrier GR9 has been delivered to the UK front line on time, to cost and to the required capability. The GR9 was formally accepted into service at the “Capability B2+” standard by the Assistant Chief of Air Staff, Air Vice Marshal Chris Moran at the end of September.
A series of capability packages, agreed in 2001, have upgraded the Harrier, changing the mark of the aircraft from GR7/T10 to GR9/T12.
NLOS Cannon Firing Platform
On 29 September, BAE Systems unveiled the Future Combat Systems (FCS) Non-Line-of-Sight (NLOS) Cannon Firing Platform. The NLOS Cannon is the lead Manned Ground Vehicle (MGV) of the Boeing/Science Applications International Corporation (SAIC) led FCS Program.
FCS, the US Army's foremost modernization programme, is an integrated family of air systems and both manned and unmanned ground systems connected by a robust network that is the US Army's foremost modernization programme. The 155-mm Firing Platform is the first step toward development of NLOS Cannon prototypes scheduled to begin testing in 2008.
Warrior Concept Phase contract award
A £400k contract has been awarded to Land Systems for support as the Prime System Integrator (PSI) designate to the Concept phase of the Warrior Capability Sustainment Programme through to the start of the Assessment Phase, currently planned for April 2007.
This is an important milestone towards establishing the long term relationship between the UK MoD and Land Systems for PSI support to upgrade activity.
SAMPSON on track for HMS Daring
The SAMPSON radar for HMS Daring, the first UK Type 45 Destroyer, has been installed on the test tower at Cowes and has begun its system level test programme. This milestone marks the completion of sub-system and antenna testing. The radar is planned to be delivered to the customer in Scotstoun during February 2007 in readiness for ship installation.
CONTRACT AWARDS THIS MONTH
Iron Duke to be refitted at FSL
Fleet Support Limited in Portsmouth will refit Type 23 frigate HMS Iron Duke as part of series of contracts awarded by the DLO, collectively valued at in excess of £31m. Similar contracts for HMS Liverpool and HMS Cumberland have been awarded to BSSL in Rosyth and DML in Devonport respectively. This work represents the first package of work as part of the developing Surface Ships Support Alliance.
TSS wins $132m COSMIC contract
TSS was awarded the Concepts and Operations for Space and Missile Defense Integration Capabilities (COSMIC) contract from the US Army. The business unit will provide system and sub-system integration, engineering and analysis, operations and maintenance, and prototyping and development support to US Army Space and Missile Defense Command’s Future Warfare Center (FWC).
The total cumulative value of the 10-year contract could reach $482m, if all options are exercised.
Contract to provide sustainment services for US Navy aircraft
TSS also received a $450m omnibus contract from the US Naval Air Systems Command (NAVAIR) to provide performance based solutions to reengineer and remanufacture obsolete aircraft parts for the US Navy and other government agencies.
BAE Systems will team with NAVAIR’s Aging Aircraft Integrated Product Team (AAIPT) to provide affordable and responsive support to fleet users. The FastTrack programme optimizes the military’s aging aircraft by flexibly and quickly providing solutions to sustain the Department’s aging legacy aircraft fleet.
US Navy facilities Operations & Maintenance contract
TSS has been awarded a $32.8m, five-year contract to operate and maintain the facilities operating under Naval Computer and Telecommunications Areas Master Station, Pacific (NCTAMS PAC) in Oahu, Hawaii.
NCTAMS PAC supports critical Command, Control, Telecommunications, Computers, and Intelligence (C4I) and Strategic Communications for the Department of Defense, Homeland Security, civilian law enforcement agencies, and allies throughout the Pacific theater and Indian Ocean. The station provides multiple telecommunications services in support of PACCOM commands.
Communications-electronics life cycle support
TSS has also been awarded a technical and professional support services contract by the US Naval Air Systems Command (NAVAIR) to continue providing communications-electronics life cycle support to the Navy and other government agencies, including the Department of Homeland Security. The value of the one-year contract is $20.6m.
The total value of the contract could reach approximately $109m over five years if all options are exercised. Under the contract, TSS will continue to support NAVAIR’s Special Communications Requirements (SCR) Division in providing maintenance, training, system upgrades, and other sustainment support for special purpose communications-electronic systems.
E&IS to develop wireless technology for simultaneous communication
Electronics & Integrated Solutions (E&IS) Advanced Systems & Technology (AS&T) organization won a Defense Advanced Research Projects Agency (DARPA) contract to develop a wireless technology that increases capacity and performance of wireless networks.
AS&T will develop DARPA’s Interference Division Multiple Access (IDMA) communications system – an ad hoc wireless communications system that lets multiple users simultaneously communicate on the same channel without centralized control or infrastructure.
E&IS to provide precise threat ID to US Army
Electronics & Integrated Solutions (E&IS) received a sole-source US Army contract for a new generation of intelligence, surveillance, and reconnaissance (ISR) systems that will provide precise detection and identification of known and potential threats.
BAE Systems’ AURORA Generation IVTM spectral ISR system combines hyperspectral imaging technology with high-resolution electro-optic and infrared sensors with an airborne processing system that exploits and fuses spectral and imagery data in real time. The AURORA Generation IV system has been developed for use on a wide range of low- and high-flying vehicles that can accommodate payloads as low as 15 pounds.
BAE Systems initially will integrate five systems on US Army Shadow unmanned aerial vehicles.
Contract for Transparent Armored Gun Shields
BAE Systems has been awarded a $40.7m contract to deliver 1,964 Marine Corps Transparent Armored Gun Shield (MCTAGS) turret kits and spares for the US Marine Corps. Under the contract, BAE Systems will deliver 1,864 MCTAGS turret kits for High Mobility Multipurpose Wheeled Vehicles (HMMWV), 95 kits for Medium Tactical Vehicle Replacement units, and five kits for the M88 recovery vehicle, in addition to spares.
