BAE Systems Investor Brief - January 2007
01 Feb 07
In This Month’s Brief:
- E&IS signs product support partnership with Army Depot
- Army says Texas group goes “Above and Beyond”
- Civil Engineering award
- Tornado ATTAC
- ‘Nightjar Programme’ to shape new generation of aircraft
- Production standard frozen on Nimrod MRA4
- Scalp Naval deep strike missile to equip FREMM and Barracuda
- Australia signs five year Hawk Support contract
- Overhaul of Military Sealift Command oiler contract
- T/A-50 Phase II award
- M113 upgrade kits for Norwegian Army
- Air defence radar contract
- Archer Program contract
- $1.16bn contracts to remanufacture and upgrade Bradley Combat Systems vehicles
- Overhaul of M88A1s contract
- Harrier contract
GENERAL NEWS
E&IS signs product support partnership with Army Depot
Electronics & Integrated Solutions (E&IS) and the Tobyhanna Army Depot have signed a partnership agreement to provide the Army with cost-effective weapon systems, support, and rapid product improvements. The depot provides repair and overhaul services on a variety of aircraft and ground-based weapon systems.
Army says Texas group goes “Above and Beyond”
Electronics & Integrated Solutions’ (E&IS) Sensor Integration (SI) in Austin, Texas, has received the US Army’s Above and Beyond Award for its support of employees in the Guard and Reserve. The award recognizes employers who “have gone above and beyond the legal requirements for supporting employees on military duty.”
SI was honoured for its “Operation Home Support” campaign, launched in August 2004. Goods donated by employees are sent quarterly to co-workers on active duty or to family members of deployed employees.
Civil Engineering award
Surface Fleet Solutions has received a commendation award from the Scottish Civil Engineering Awards in recognition of project management and team work with suppliers in the upgrade of number 2 dock at Scotstoun, UK.
MAJOR PROGRAMME UPDATES
Tornado ATTAC
BAE Systems has been awarded a £947m contract by the UK Ministry of Defence (UK MoD) that will increase the Tornado aircraft’s availability for frontline operations, while considerably reducing the cost to the taxpayer. Confirmed on the 22 December 2006, ATTAC (Availability Transformation: Tornado Aircraft Contract) is potentially worth up to £1.5bn over the initial 10 years of the programme.
‘Nightjar Programme’ to shape new generation of aircraft
BAE Systems and the UK MoD have completed to time and budget the second and final phase of the ‘Nightjar Programme’ - a six-year joint initiative aimed at increasing UK design and manufacturing know-how for a new generation of air vehicles.
The data collected will be central to leading-edge programmes, including the £124m Taranis technology demonstrator programme recently announced as part of the UK Defence Industrial Strategy. BAE Systems is the industry lead and prime contractor of this joint project to develop a stealthy UAV (Unmanned Air Vehicle).
Nightjar began in 2000 and its unique testbody has been used to test new features, which could be crucial for the future of air vehicle design. The testbody was designed to have a very low radar signature so that technologies fitted on it could be tested without the body itself figuring in the test results.
Production standard frozen on Nimrod MRA4
The Nimrod MRA4 programme achieved its last key milestone of 2006 on schedule in December when the build standard for production aircraft, known as the Air Vehicle Design Standard (AVDS), was agreed and frozen.
The standard is planned for use from the start on PA6, through to PA12, in the retrofit before delivery window on PA4 and PA5, and as the refurbishment standard for the three aircraft development fleet, PA1, 2 and 3.
Scalp Naval deep strike missile to equip FREMM and Barracuda
MBDA has been awarded a contract from the French Ministry of Defence to develop and produce 250 SCALP Naval missiles. 200 of these will equip the French Navy’s FREMM multi-mission frigates, while the remaining 50 are for its Barracuda submarines. The contract, dated 29 December 2006, is made up of four tranches with the first tranche coming into force immediately, covering the delivery of 50 missiles for the FREMM frigates in 2013.
Building on the success of the European air launched cruise missile Storm Shadow, the launch of Scalp Naval provides European and export customers with a new option for providing unrivalled precision deep strike capability from submarine and surface platforms.
CONTRACT AWARDS THIS MONTH
Australia signs five year Hawk Support contract
BAE Systems Australia has been awarded a contract worth AUD$342m by the Australian Defence Force to provide support to its Hawk Lead In Fighter fleet. Under the performance-based contract BAE Systems will deliver five years of through-life support to the platform, with guaranteed availability levels.
Overhaul of Military Sealift Command oiler contract
BAE Systems Norfolk Ship Repair has been awarded a contract by the US Navy’s Military Sealift Command to overhaul and drydock the USNS Leroy Grumman (T-AO 195), a Henry J. Kaiser Class oiler that provides underway replenishment of fuel to Navy combat ships at sea, enabling them to remain deployed for extended periods of time. The cumulative value of the contract could reach nearly $8m if all options are exercised.
T/A-50 Phase II award
Electronics & Integrated Solutions’ (E&IS) Defense Avionics in Los Angeles received a $9.3m award for Phase II of the T-50 Automated Test Equipment (ATE) program from Korea Aerospace Industries (KAI). The contract includes the redesign of Defense Avionics' Modular Automated Test System (MATSTM), with significant engineering and development effort, plus a delivery of one new MATSTM station with associated Test Program Sets (TPSs).
The development work will start in early 2007, with deliveries in 2008, and the certification of all 10 TPSs completing in 2009.
M113 upgrade kits for Norwegian Army
BAE Systems has received a contract from the Norwegian Defence Procurement Division for the development and delivery of M113 upgrade kits. Work will be performed at BAE Systems' facility Santa Clara, California, and will include the upgrade of 72 power pack kits, air conditioning system kits, suspension kits, and track system kits for Norwegian M113 vehicles, plus the provision of logistics support and spare parts.
Air defence radar contract
Insyte has been awarded a contract, worth in excess of £30m, for the Type 93 Air Defence Radar Capability Replacement Programme (T93 CRP). Under the contract, Insyte will supply the UK Royal Air Force (RAF) with a new air defence COMMANDER SL radar, upgrade an existing in-service Commander radar (designated RAF Type 101) and provide 20 years availability based support.
The RAF will designate the new radar and the upgraded radar as Type 102. This strategically important programme for Insyte signals the future for radar capability in the national security of the UK.
Archer Program contract
BAE Systems Bofors has received a contract worth $15m from the Swedish Defence Materiel Administration for next phase of the Archer program, a self-propelled 155-mm artillery gun. This contract includes the next step in developing the gun system and the product definition phase on ammunition supply vehicle and modular charges.
$1.16bn contracts to remanufacture and upgrade Bradley Combat Systems vehicles
BAE Systems recently received contract modifications worth $1.16bn from the US Army TACOM Life Cycle Management Command to remanufacture and upgrade 610 Bradley Combat Systems and to provide spare components for these systems. BAE Systems, working through its Public Private Partnership with Red River Army Depot (RRAD), will remanufacture and upgrade 490 Bradley A3 systems and 120 Bradley A2 (ODS) systems under the awards.
Initial disassembly and subsystem rebuild will be performed at RRAD, final disassembly and structural modifications will be performed by BAE Systems in Fayette County, Pennsylvania and final assembly, integration and test will be conducted at the BAE Systems facility in York, Pennsylvania. Work on the contracts will begin immediately, with deliveries scheduled to begin in April 2008 and run through April 2009.
Overhaul of M88A1s contract
BAE Systems has received ceiling priced orders to partner the FY07 RESET quantity of 166 M88A1s with the Anniston Army Depot (ANAD). BAE Systems will induct and disassemble the vehicles, repair and paint the hulls, overhaul or acquire the majority of the components, and deliver the material and assembled components stationed for the ANAD’s production line where the assembly and testing of the vehicles will be completed.
Harrier contract
In December, BAE Systems secured the Joint Systems and Software Support Organisation (JSSSO) contract from the DLO Harrier IPT at an order value of £21.8m. This contract provides a fully partnered approach between BAE Systems, the Harrier Jaguar Survival Integrated Project Team (HJS IPT) and RAF to deliver a single source integrated software support solution that will run to the Harrier GR9/9a/TMk12 Out of Service Date (OSD).
