August 16, 2002
GENERAL NEWS
MAJOR PROGRAMME UPDATES
CONTRACTS AWARDED TO BAE SYSTEMS THIS MONTH
INTERNATIONAL PARTNERSHIP UPDATE
Date of issue: 5 August 2002 GENERAL NEWS BAE SYSTEMS Opens Fort Worth Operations
BAE SYSTEMS has consolidated its Fort Worth offices in a move designed to improve customer support for Lockheed Martin Aeronautics. Fort Worth Operations will be the centerpiece for more than $200 million of business each year, as BAE SYSTEMS provides Lockheed Martin Aeronautics with electronic warfare equipment, cockpit displays, flight controls, communication systems, engineering support and test equipment.  Back to Top
BAE SYSTEMS Agrees to Sell Chaff and Flare Business
BAE SYSTEMS North America and Esterline Technologies have reached a definitive agreement under which Esterline Technologies will acquire BAE SYSTEMS' Electronic Warfare Passive Expendables Division, consisting of two business lines that produce expendable defensive countermeasures - chaff and flares. Closing of the sales agreement, negotiated at $67.5 million in cash, is expected to occur within 60 days. Back to Top Avionics Group Sponsors the Blue Eagles
Avionics is to be principal sponsor of the Blue Eagles, the Army Air Corps' Helicopter Display Team for the first time in 2002. This support for the Blue Eagles reflects the growing importance of the military helicopter market to the company. Many of the Army Air Corps aircraft feature the products of BAE SYSTEMS. Back to Top MAJOR PROGRAMME UPDATES Typhoon Export Update
Austria has selected Typhoon for its Draken replacement programme. Contract negotiations will now start for the procurement of up to 24 aircraft. The expected value of the programme is in the region of £1.28bn ($1.98bn). Back to Top Typhoon Carefree Handling Trials
The Typhoon Single Seat Development Aircraft (DA2) based at Warton, UK, has successfully completed a series of high-risk, asymmetric carefree handling flight trials designed to evaluate the Flight Control System on the aircraft. Back to Top Hawk
The Kingdom of Bahrain announced on 22 July that it had selected the Hawk trainer aircraft to meet the future training requirements of the Royal Bahraini Air Force (RBAF). In addition to the procurement of Hawk aircraft it is envisaged that the initial package will also contain test and ground equipment, technical assistance and training. Back to Top JSF Commitments
The Norwegian Government signed a Memorandum of Understanding (MOU) with the United States Government to participate in the JSF System Development and Demonstration (SDD) programme in June. Norway will contribute approximately £85m ($125m) to the programme over the SDD phase. Also in June Italy signed a Government-to-Government MOU outlining Italian participation in the JSF SDD phase. Italy has committed to invest £693m ($1.018bn) in the JSF programme.
In July Turkey signed up for the JSF programme and over the life of the programme's SDD phase will contribute approximately £119m ($175m). Back to Top Nimrod
Good progress is being made on Product Aircraft 1 (PA1) with a major milestone being secured with the installation of all four-production engines. Back to Top Gripen for Czech Republic
In the Czech Republic, the Gripen International team is waiting for the formation of the new government, following the country's General Election on 14/15 June, in order to continue its discussions regarding the supply of 24 new Gripen swing-role fighters. At the request of
the Czech government, the validity of the terms of the Gripen proposal has been extended until the end of September 2002 and in the months ahead, the Gripen team will continue to work to deliver the economic and industrial benefits associated with the Gripen offset programme and work with international partners to achieve successful implementation of this contract. Back to Top Gripen for Poland
The Gripen International team welcomed receipt of the Request for Proposal (RFP) from the Polish authorities on 8th July 2002, detailing a requirement for the submission of formal proposals for the supply of 48 new jet aircraft to be submitted on 12th November 2002, with down-selection at the end of 2002. Back to Top Gripen for Brazil
Following the Brazilian Air Force (FAB) flight and technical/project management evaluations of Gripen in Linköping between 22nd March and 12th April, a request for a revised proposal was received from the Brazilian authorities and Gripen International's response was submitted on 3rd May with a Best and Final Offer (BAFO) being submitted on 20th May. It is anticipated that a decision could be made in the second half of 2002. Back to Top Landing Craft Milestone
The first Landing Craft Utility (LCU) constructed entirely at Govan has been handed over to the customer after successfully completing its official sea trials. This marks a major milestone for the programme. Sea Systems is building eight LCUs at Govan, to carry Royal Marines and their equipment to and from the Landing Platform Dock (LPD) assault ships Albion and Bulwark under completion in Barrow. Back to Top CONTRACTS AWARDED TO BAE SYSTEMS THIS MONTH NLAW Selection Decision
The Minister of Defence Procurement, Lord Bach, announced that MBT LAW UK has been chosen as the preferred supplier for the £400M Next Generation Light Anti-Armour Weapon Programme (UK NLAW). Instrument Systems Division (ISD) Plymouth, UK is part of the Team and will produce the Silicon Inertial Measurement Unit (IMU) for the missile's guidance system. The initial selection is for production of up to 18,000 IMUs with predicted sales of 80,000 to 100,000 systems. This is a major award for ISD Plymouth, which underpins the Silicon Aerospace and Defence strategy. Back to Top C4ISR Awarded Falcon Assessment Phase Contract
C4ISR, in partnership with world-wide commercial and defence companies, has been selected by the UK Ministry of Defence to undertake one of two Assessment Phase contracts for Project FALCON, the British Armed Forces' future tactical wide area communications system. Back to Top Support Contracts Secured for Type 22 and Type 23 Frigates
Customer Solutions & Support has been awarded a £6m five-year design support contract by the MoD. The work will cover surface ship design support for Type 22 and Type 23 Frigates and will be carried out by CS&S's Land & Sea business at Titchfield, Hampshire. Back to Top Mapping Rebid Successful
Customer Solutions and Support Australia has been reselected to provide facilities management for Australian mapping. Under the A$12.2 million, five-year contract CS&S Australia will be responsible for staffing, operation, maintenance and further development of the topographic map and digital data production services conducted at the National Mapping Division of Geoscience Australia. Back to Top U.S. STRATCOM Air Vehicle Planning System
Mission Solutions has received a $37.5 million contract from U.S. Strategic Command for engineering services and on-site support of the Air Vehicle Planning System program. The Air Vehicle Planning System (APS), developed by Mission Solutions, performs autorouting and analytical functions in support of the nation's Single Integrated Operational Plan and Conventional Air Launched Cruise Missile planning. Back to Top IEWS Wins $55M Space Components Contract
Information & Electronic Warfare Systems' (IEWS) recently won a space electronics contract worth $55 million. TRW signed IEWS for the development and manufacture of radiation-hardened electronics for the U.S. Air Force's Advanced Extremely High Frequency (AEHF) military communications satellite system. Back to Top TERRIER Contract Success
RO Defence has been selected by the UK MOD for the TERRIER programme, which is the next generation air-transportable armoured combat engineer vehicle for the Royal Engineers. The requirement is for a wide utility vehicle with reduced logistic support requirements that will support both the current force structure and the future with FRES (Future Rapid Effects System). The contract value is £350 million and covers development, production and the initial phase of Contractor Logistic Support (CLS). Back to Top XM777 First Delivery
The first US-built XM777 Lightweight Howitzer was delivered to the US Army and US Marine Corps during a ceremony at its new assembly facility in Hattiesburg, Mississippi on 18th July. The delivery also marks the successful integration of the US supplier base, which has been developed over the last two years by RO Defence. The XM777 will replace the M198 towed howitzer, currently in use with the US Army and Marine Corps, and will provide increased strategic and tactical improvements. The decision on a low rate initial production contract
is scheduled for October 2002. Back to Top INTERNATIONAL PARTNERSHIP UPDATE AMS Air Traffic Management and Airport Systems successes
AMS Air Traffic Management and Airport Systems Division (ATMAS) achieved a double success last month, acquiring two major orders. The first order was an upgrade to the Naples Airport Approach System (APP) for ?15m. The second order, worth ?6.7m, was for the supply of an ATCR L-band radar for the area surrounding Hong Kong airport.
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BAE Systems Investor Brief - July 2002
