BAE Systems Investor Brief - November 2004
03 Dec 04
In this month's brief:
- UK AJT MILESTONE
- NIMROD MRA4 UPDATE
- TYPE 45 PROGRAMME: ISD (IN-SERVICE DATE) SLIPPAGE
- LSD (A) PROJECT
- ASTUTE ACCEPTANCE MILESTONE
- ASTUTE MODULES SUCCESS
- NULKA CONTRACT EXTENSION
- IASSF CONTRACT EXTENSION
- HARRIER GR9 GATE 2 CONTRACT SIGNED
- £2M HARRIER VRS CONTRACT
- CV90 TRAINING CONTRACT
- NETHERLANDS EXPRESS INTEREST IN CV90
- U.S. NAVY PEO INTEGRATED WARFARE SYSTEMS CONTRACTS
- CONTRACT MODIFICATION
INTERNATIONAL PARTNERSHIPS - AMS
INTERNATIONAL PARTNERSHIPS - GRIPEN INTERNATIONAL
INTERNATIONAL PARTNERSHIPS – MBDA
GENERAL NEWS
Best Factory awards
BAE Systems Avionics in Edinburgh received two of the thirteen awards at a recent ceremony, which honoured the UK’s top manufacturing plants. BAE Systems was named ‘Best Electrical and Electronics Plant’ and ‘Best Factory for People Management’ in the Best Factory Awards, organised by Cranfield School of Management.
trilogi team award
A joint BAE Systems and Defence Logistics Organisation (DLO) team has been awarded a Chief of Defence Logistics commendation for the part they are playing in reducing costs and improving efficiencies. The trilogi team, based in Scotstoun has been selected by the Chief of Defence Logistics to receive a Commendation Award.
trilogi is a web browser that uses advanced but user friendly navigation technology to access vast volumes of logistics, maintenance and operating information in a cost effective way. Under the trilogi contract an anticipated 30,000 licenses will be provided to the MoD.
MAJOR PROGRAMME UPDATES
UK AJT milestone
The Hawk New Demonstrator Aircraft (HNDA) achieved a significant success in the UK Advanced Jet Trainer development programme on 25 October.
Flt. Lt. Dave Ballance of Qinetiq piloted the flight on behalf of the customer, the Defence Procurement Agency, which achieved Technology Readiness Level 7 (TRL7) for the new open architecture mission computer, proving the maturity of the technology in a truly representative environment and a crucial milestone for the UK AJT programme.
The new generation Hawk's advanced mission computer enables the integration of significant additional capability, such as sensor and weapon simulation, and is the key enabler to planned future enhancements to keep Hawk at the forefront of advanced jet training.
Nimrod MRA4 update
Following its historic first flight in late August, the lead design and development aircraft PA01 is progressing well in its flight trials programme at Warton, and achieved a number of 'firsts' in November.
The second development aircraft, PAO2, has undergone successful engine and other trials as it remains on track for its first flight around the end of this year/early next year.
Type 45 Programme: ISD (In-Service Date) slippage
The National Audit Office announced on 9 November that the Type 45 programme was likely to slip by some 18 months from original In Service Date. The new ISD is May 2009.
LSD (A) Project
Mounts Bay progresses well with handover to MoD scheduled for November 2005. All blocks have now been moved to the berth on final ship, Cardigan Bay which will be launched on 8 April 2005.
Astute Acceptance Milestone
A programme to agree the acceptance criteria for the Astute submarine programme between BAE Systems and the Defence Procurement Agency was completed on 31 Oct.
This is a key de-risking exercise in managing the acceptance of the submarine off contract since it increases confidence in the ability of the design to meet the customer's requirements.
The agreement is a major milestone in a programme of this complexity.
Astute Modules success
The first two major modules in a new build strategy have been completed and shipped into the hull of the first of the new Astute class of submarines. The Manoeuvring Room Module was shipped two months ahead of programme and the Forward Engine Room Module was three weeks earlier than programmed.
The advantage of modular build is that carrying out as much installation and outfitting as possible in workshop conditions, before the module is shipped into the confines of the hull, enables higher quality standards to be achieved, programme man-hours to be saved and the risk of rework significantly reduced. These successes have confirmed the strategy; with two more major modules underway and others are being identified.
CONTRACT AWARDS THIS MONTH
Nulka contract extension
CS&S Australia has been awarded an AUD$43.6m contract by the Australian Defence Material Organisation to supply additional Nulka active decoy anti-ship missile defence systems.
These additional deliveries are primarily for the US Navy, which has recently baselined Nulka on all their major surface ships. The order represents a significant increase in the annual product rate for Nulka and further secures Nulka as a primary weapon system for the US Navy. Nulka is now Australia’s largest defence export contract to the USA.
IASSF contract extension
CS&S Australia’s Military Air Support business has been awarded a two year contract extension to maintain the F/A-18 Integrated Avionics Systems Support Facility (IASSF) at Williamtown, New South Wales.
The contract increases the total value of system upgrades, maintenance and Operational Flight Program (OFP) support to AUD$43 million. IASSF is designed and developed by BAE Systems. It replicates all systems on the F/A-18 aircraft in service with the Royal Australian Air Force (RAAF) and is used to develop, integrate, test and maintain aircraft systems and software.
Harrier GR9 Gate 2 contract signed
CS&S MASS has been awarded the Joint Upgrade and Maintenance Programme prime contract to embody the Harrier GR9 modifications. The contract delivery team will be based at RAF Cottesmore and the programme will include the support of RAF personnel and the use of RAF infrastructure.
£2m Harrier VRS contract
A spares inclusive repair contract for the Harrier Video Recording System (VRS) was awarded in October. The VRS is an on-aircraft application that has a number of uses including recording airborne and ground imagery. The contract is to provide a service to the Harrier IPT over the next five years and is worth £2m.
CV90 Training contract
Land Systems Hägglunds has received an order from Switzerland for CV90 combat vehicle training simulators. The equipment will consist of chassis and turret trainers and will be used for training crew and technical staff.
Netherlands express interest in CV90
In a letter to Parliament, Netherland's defence ministry stated that the CV90 army combat vehicle produced by Land Systems Hägglunds is the best candidate for an order under consideration by the Dutch military. The CV90 emerged from three contenders as the vehicle with the best qualifications, lowest risk and price, and quickest delivery time, the ministry said.
An initial prototype is expected to be ready next year, with delivery starting in 2007 and continuing through 2010.
U.S. Navy PEO Integrated Warfare Systems contracts
Technology Solutions Sector was awarded the SeaPort Task Order for Professional Services in support of the Program Executive Office (PEO) Integrated Warfare Systems Major Program Manager for Undersea Systems.
The contract is a potential 10-year award, including five award term years, with a total value of $148 million. This review culminates in a clean sweep of all PEO competitive bids and all Surface Warfare Business Unit proposals with a combined value of $1.3 billion.
Contract Modification
Integrated Electronic Systems is being awarded a $7.9 million contract modification to provide technical and engineering services to support the Naval Air Systems Command Aircraft Division’s Air Traffic Control and Landing Systems.
INTERNATIONAL PARTNERSHIPS - AMS
AMS: Key Supplier for Franco-Italian FREMM Frigate Programme
AMS will have an important role as major supplier on the Franco-Italian FREMM programme for the supply of 27 new generation multi-mission frigates that will enter service in the next decade.
AMS will supply the multifunctional radar EMPAR (the heart of the missile systems), the new generation IFF radar, the RAN 30X/I medium range radar, the Inner Layer Defence System based on the NA-25 Fire Control System, together with the Dual Weapon Assignment Logic Unit (DWALU).
INTERNATIONAL PARTNERSHIPS - GRIPEN INTERNATIONAL
Gripen for Thailand
Following the visit to Sweden by the Thai Prime Minister Thaksin Shinawatra on 23-24 September, he stated that Thailand is in favour of Gripen as its F-5 replacement aircraft.
In parallel, Swedish industry and government agencies have held extensive talks with their Thai counterparts to develop relations between Thailand and Sweden and to create a bilateral co-operation program serving as a basis for a possible future sale of Gripen to Thailand.
INTERNATIONAL PARTNERSHIPS – MBDA
Storm Shadow
On 28 October, the Assistant Chief of the Air Staff formally accepted the Storm Shadow stand-off air-to-ground missile into service with the RAF. The Initial Operating Capability has been available since March 2003.
ASRAAM
The Advanced Short Range Air-to-Air Missile (ASRAAM) has been accepted into service by the UK MoD at FOC2 (Full Operational Capability 2) standard. This means that ASRAAM has now successfully reached the end of its development phase, and missiles can be integrated onto RAF aircraft and introduced into service.
Brimstone
A significant milestone was achieved on the Brimstone air-launched anti-armour missile programme on 22 October, when the UK MoD signed the Interim Certificates of Design for the missile and the weapon. This has allowed the delivery of production missiles and launchers to commence. These deliveries will continue over the next few months in parallel with the completion of the remaining development activities.
