BAE Systems Investor Brief - January 2005
01 Feb 05
In this month's brief:
- NIMROD MRA4
- UK AJT DESIGN AND DEVELOPMENT CONTRACT SIGNED
- MAIDEN FLIGHT FOR SOUTH AFRICA’S FIRST LOCALLY-ASSEMBLED HAWK
- TYPHOON
- INITIAL GATE APPROVAL RECEIVED FOR PROJECT MASS
- FORCE AWARENESS AND PROTECTION CONTRACT EXTENSION
- TORNADO CONTRACT AWARD
- NIMROD MR2 CONTRACT AGREED
- GERMANY ORDERS 75 BV206S
- SUPPORT FOR U.S. NAVY
- TOWED ARRAY TASK ORDER
- E-2C HAWKEYE SENSOR INTEGRATION
- FADEC INTERNATIONAL SELECTED TO DEVELOP ENGINE CONTROL
INTERNATIONAL PARTNERSHIPS - AMS
INTERNATIONAL PARTNERSHIPS - ATLAS ELEKTRONIK
INTERNATIONAL PARTNERSHIPS - GRIPEN INTERNATIONAL
INTERNATIONAL PARTNERSHIPS – MBDA
GENERAL NEWS
Sale of Stanmore Site
The sale of the Stanmore site to Crest Nicholson was completed on 23 December 2004. The purchasers will now be submitting a planning application for residential use for the site. Avionics recently moved from Stanmore to a new facility at Capability Green, Luton.
MAJOR PROGRAMME UPDATES
Nimrod MRA4
Following its successful first flight on 15 December 2004, the second Nimrod MRA4 development aircraft PA02 has since undertaken two further flights. The last of these, on Thursday 13 January, landed at Air Systems’ Woodford site for the first time. This is important to the programme, and means that there are now more options for hangarage, maintenance, and lay-ups as the flight trials programme becomes more intensive.
'Power on' was also achieved on the third and final development aircraft, PA03, immediately before the Christmas break. First flight of PA03 is scheduled for mid-2005.
UK AJT Design and Development Contract signed
Following the initial UK Government decision to buy Hawk in July 2003, the Design and Development Contract (DDC) for the UK's Hawk Advanced Jet Trainer was signed with the UK Defence Procurement agency on 22 December 2004.
The Contract entails the design, development and demonstration of two Mk.128 Advanced Jet Trainer aircraft. The contract also includes a support system definition phase to identify the likely required support for the aircraft to satisfactorily enter service with the RAF in 2008.
Design and development work on Hawk AJT has, to date, been completed to schedule and has resulted in the recent first flight of the new, open architecture mission computer, a key enabler in future capability for both the UK and in the export market.
Maiden flight for South Africa’s first locally-assembled Hawk
South Africa’s first locally-assembled Hawk fighter trainer aircraft has successfully completed its maiden flight from the Denel Aviation facility at Johannesburg International Airport.
The Hawk Mk.120 was flown by South African industry test pilot, Dave Stock, together with BAE Systems’ Hawk Project Pilot Gordon McClymont. During the flight the aircraft’s flight controls, response and essential systems functionality were confirmed.
The South African Air Force has ordered 24 Hawk Mk.120s and the first aircraft is scheduled to be delivered in the middle of 2005.
Typhoon
2004 ended extremely positively for Typhoon. Not only was the signature of the Tranche 2 contract confirmed in late December 2004, but also the Typhoon team achieved the Type Acceptance of the Batch 2 aircraft on 13 December.
This is a major milestone in the Typhoon programme and was a prerequisite for the delivery of initial Batch 2 aircraft to the four partner nations – the first of which was delivered to Spain in late December. Batch 2 represents a significant enhancement on the aircraft that are currently in service.
Swiftly following Batch 2 Type Acceptance came the maiden flight of BS004, the first UK production standard single seat aircraft, which flew on 21 December 2004.
Initial Gate Approval received for Project MASS
Munitions management is seeking to transform our existing Framework Partnering Agreement, covering the supply of munitions to the UK Ministry of Defence (MoD), into a service based offering that will include Land Systems Munitions & Ordnance potentially taking responsibility for stockpile management, storage, in-service surveillance and distribution.
A recent key milestone was the formal approval by the MoD Investment Appraisal Board (IAB) that the project has passed its Initial Gate requirements and it can formally move into the Assessment phase. This was formally received at the end of December.
The forward programme has the team evaluating the options selected during the early part of 2005 with a full proposal being submitted in June 2005 and an anticipated contract award in December 2005.
CONTRACT AWARDS THIS MONTH
Force Awareness and Protection contract extension
CS&S Australia’s Force Awareness and Protection business has been awarded a two-year contract extension for the operations, maintenance and ongoing development of the Jindalee Facility Alice Springs.
Tornado contract award
CS&S MASS has been awarded a £25 million contract to support the UK Tornado F3 fleet. Under the contract, known as the F3 Sustainment Programme (FSP), the aircraft will be modified to integrate the latest standards of air defence missiles, the Advanced Medium Range Air-to-Air Missile 120C-5 and Advanced Short Range Air-to-Air Missile FOC2.
Nimrod MR2 contract agreed
The scope of the existing Nimrod Integrated Support Contract has been expanded through the Logistics Transformation Contract (LTC) signed in December. The LTC sees the transfer of a range of activities to CS&S and the deployment of e-Capability.
Germany orders 75 Bv206S
The German procurement agency, Bundesamt für Wehrtechnik und Beschaffung (BWB) signed an order in December with BAE Systems Land Systems Hägglunds organisation for 75 Bv206S all-terrain vehicles valued at approximately 300 m SEK (approximately £23 million).
Hägglunds will be working with the German company Rheinmetal Landsysteme GmbH to deliver the programme. The order forms part of Germany’s overall requirement for some 200 vehicles. The first batch was ordered in 2002 and contained 31 Bv206S.
The Bv206S is an armoured variant of the Bv206, of which Land Systems Hägglunds has built more than 11,000 units and exported to 40 countries world-wide. The German Army currently has 168 Bv206 vehicles amongst its fleet. The new Bv206S armoured vehicles will be used in the German Army’s Mountain brigade based in Mittenwald.
Support for U.S. Navy
Analytical & Ordnance Solutions in Huntsville, Ala. will provide contract support services for the Navy’s strategic sourcing program. Potential contract value to BAE Systems over a five year period is $12 million.
Towed Array Task order
Technology Solutions Sector was awarded a task order under the SEAPORT-e contract for follow-on work to the Towed Array Test and Evaluation Facility contract. The contract value is $49.9 million, of which the sector expects to perform approximately $32.9 million of the effort (including subcontractors) over the 48-month period of performance.
E-2C Hawkeye Sensor Integration
BAE Systems National Security Solutions, Applied Information Technology Line of Business has been awarded a contract by the Naval Air Systems Command (NAVAIR) to support the Navy’s Multi-Sensor Integration (MSI) Phase II Project. Including options, the program is valued at $12 million. The Multi-Sensor Integration Project is developing real-time software to integrate the on-board and off-board sensor information available to the Navy’s E-2C Hawkeye aircraft.
FADEC International selected to develop Engine Control
GE Aircraft Engines has selected FADEC International — a limited-liability company formed by BAE Systems and Hispano-Suiza — to develop the full-authority digital engine control for its next-generation engine, the GEnx.
FADEC International will base the new control on the FADEC designs currently flying on GE and CFM International engines and intended for use on the Engine Alliance GP7200. The fuel-saving GEnx engine is expected to be used on Boeing’s new twin-engine 7E7 Dreamliner.
Jammer Follow-on contract
The US Navy has awarded Information & Electronic Warfare Systems (IEWS) a $12 million follow-on contract to maintain and upgrade AN/ALQ-157 Infrared Countermeasure Systems for the US Marine Corps and Navy. The AN/ALQ-157 is designed to protect aircraft by jamming the missile guidance of a heat-seeking missile.
INTERNATIONAL PARTNERSHIPS - AMS
AMS to update Sandown Class CMS
In December, AMS was awarded a €11m contract to update the existing NAUTIS combat management systems aboard the Royal Navy’s (RN) Sandown Class Minehunters to NAUTIS 3 standard.
The contract also includes enhancements to the NAUTIS systems for both Hunt and Sandown classes to add the foundations for Network Enabled Capability in the RN’s Mine Countermeasures Fleet. NAUTIS 3 is currently being fitted to the RN’s Hunt Class Mine Hunters as part of their mid-life update.
Precision Approach Radar contract
In December AMS signed a €20m contract with the UK Ministry of Defence (MoD) to supply two Precision Approach Radars (PARs) for the aircraft carriers Ark Royal and Illustrious.
These radars are being acquired as part of the Harrier marinisation programme to enable GR9 Harrier aircraft to operate from aircraft carriers in all weathers, by day and night. The first fit is scheduled for Ark Royal during her 2006 refit.
10-year radar support contact
AMS has signed a 10-year contract, with the UK Royal Navy for the long-term support of the Type 996 surveillance radar used on all major UK naval warships. This long-term support will bring an enhanced service and long term savings to the Royal Navy over the lifetime of the contract.
INTERNATIONAL PARTNERSHIPS - ATLAS ELEKTRONIK
New Generation ISUS reaches important milestone
ATLAS’ new generation Integrated Sensor Underwater System ISUS 90 successfully went through Factory Acceptance Tests (FAT) for three different navies. This important milestone underlines the ISUS position as the leading combat system for conventional submarines.
INTERNATIONAL PARTNERSHIPS - GRIPEN INTERNATIONAL
Hungarian Gripens roll-off the line at Saab
Hungarian Defence Minister Ference Juhász and the Swedish Defence Minister Leni Bjorklund were present as the first Gripen fighter for the Hungarian Air Force rolled-off the production line at Saab’s factory in Linköping, Sweden on 25 January.
This is the first of the 14 NATO-interoperable Gripen fighters ordered by Hungary as part of its lease and purchase agreement with Sweden. A further 5 Hungarian Gripen fighters will be in production at Saab during 2005, with the first aircraft being delivered in March 2006 and all deliveries being completed during 2007.
INTERNATIONAL PARTNERSHIPS – MBDA
Brimstone Production
MBDA made the first deliveries of Operational Brimstone Missiles during the final quarter of 2004 and the Brimstone IPT Leader at the DPA, Wg Cmdr Angela Hawley, visited the Beith Live Build Facility, near Glasgow, to congratulate the team on the delivery of the 500th missile.
Brimstone is due to enter service with the RAF mid-2005, but the missile deliveries achieved to date already exceed the required In Service Date quantity.
As well as being deployed on Tornado GR4, the weapon is also being integrated on the Harrier GR9 aircraft and an integration contract for this was signed with BAE Systems in December.
Meteor Beyond Visual Range Air-to-Air Missile Assembly Processction
The commissioning of the Meteor inert missile assembly process has been successfully completed. This represents a significant achievement.
