BAE Systems Investor Brief - February 2005
01 Mar 05
In this month's brief:
- JOINT STRIKE FIGHTER (JSF)/FUTURE CARRIER INTEGRATION
- MAJOR NETHERLANDS ORDER
- ALL TERRAIN VEHICLES FOR FRANCE
- INVITATION TO TENDER FOR SEP
- ASTUTE KEEL LAYING
- C4ISR NS&S DOWNSELECTED FOR SHAMAN
- ECHIDNA CONTRACT
- FLEET SUPPORT LIMITED (FSL) AWARDED HMS RICHMOND CONTRACT
- ALQ-144S TO PROTECT ARMY, NAVY HELICOPTERS
- “FLEET NUMERAL” IT CONTRACT
INTERNATIONAL PARTNERSHIPS - AMS
INTERNATIONAL PARTNERSHIPS - ATLAS ELEKTRONIK
INTERNATIONAL PARTNERSHIPS - GRIPEN INTERNATIONAL
INTERNATIONAL PARTNERSHIPS - UNDERWATER SYSTEMS
GENERAL NEWS
ABRO and Land Systems form Strategic Partnership
BAE Systems Land Systems, the MoD’s principal supplier of land systems equipment, has signed a strategic partnering agreement with the Army Base Repair Organisation (ABRO), the MoD’s key land systems support organisation.
Under the agreement, ABRO and BAE Systems will work together to provide an innovative and integrated approach to equipment support of weapons and armoured vehicles in service with the British Army.
BAE Systems will be the prime contractor and design authority with ABRO providing the in-service fleet support. The key objectives of the agreement are to improve fleet availability, reduce support costs, improve reliability and reduce repair turnaround and lead times. It will also improve on the provision of spares and provide technical support.
MAJOR PROGRAMME UPDATE
Joint Strike Fighter (JSF)/Future Carrier Integration
The JSF Team has submitted their proposal of how to integrate the JSF and the UK's Future Carrier, to the Customer, the Joint Program Office (JPO). The BAE Systems work content makes up a significant part of the overall integration task and as a result it has been agreed that BAE Systems will lead the programme on behalf of the JSF team.
Contract negotiations with the UK customer and JPO are expected to start sometime late February with a planned contract award date of 3Q 2005.
Major Netherlands Order
BAE Systems Land Systems Hägglunds has won a €749m (approximately £500m) order from the Netherlands for its CV90 armoured vehicle. The contract is for the delivery of 184 infantry fighting vehicles between 2007 to 2010.
Land Systems Hägglunds’ CV9035 was selected for the Dutch infantry fighting vehicle programme after an extensive competitive evaluation. Sweden, Norway, Switzerland and Finland have all selected the CV90 and the new Dutch contract brings the total ordered to 1125.
All terrain vehicles for France
As one of two shortlisted contenders, Hägglunds has submitted a quotation for the BvS10 All Terrain Vehicle to France. The French requirement is for 190 vehicles of which 70 vehicles are optional. Trials will be conducted during Jan-May 2005 with type selection in autumn 2005.
Invitation to Tender for SEP
FMV (the Swedish Defence Materiel Administration) has sent Hägglunds an invitation to tender for SEP, a Swedish project for a new modular vehicle system for the Swedish Defence Forces. Bid time is estimated to the second quarter of 2005. With a development contract placed in Q3 2005, the first SEP vehicles can be delivered 2010.
The UK has a similar requirement and preliminary co-operation agreements between governments and industry in Sweden and the UK are in place. A large part of the British programme, Future Rapid Effect System (FRES) shares similarities with the SEP project.
Astute Keel Laying
A keel laying ceremony will be held on 11 March for the third Astute class submarine Artful. Minister for Defence Procurement Lord Bach will pull a cord to reveal the submarine's Unit 4 Manoeuvring Room Module and Diesel Generator section.
Unlike previous 'keel' sections, Artful's Unit 4 will be in the vertical, rather than horizontal 'shipwise' position, ready for a new way of outfitting equipment that will be quicker, safer and cheaper than the traditional approach.
CONTRACT AWARDS THIS MONTH
C4ISR NS&S downselected for SHAMAN
BAE Systems’ C4ISR Networked Systems & Solutions (NS&S) has been downselected as the preferred contractor for the UK Ministry of Defence (MoD) Project SHAMAN. This £140m ISTAR programme will provide the Royal Navy with its next generation Communications Electronic Support Measures (CESM) capability.
The programme encompasses the supply of the CESM systems, the installation on multiple platforms, training and through life support over a 20+ year period. The programme now moves into a 12 - 14 month Advanced Demonstration Phase ahead of the main production programme.
Echidna contract
CS&S Australia has been awarded a contract, valued in excess of $120M, to design, integrate and install advanced Electronic Warfare Self Protection (EWSP) Systems to the Blackhawk and Chinook helicopters, for the Australian Defence Force.
The Echidna electronic warfare self-protection systems, which will be installed under Project Air 5416 Phase 2A, include BAE Systems Australia’s ALR-2002 Advanced Radar Warning Receiver (RWR) and Sensor Independent Integrated Defensive Aide Suite (SIIDAS) Controller.
Fleet Support Limited (FSL) awarded HMS Richmond contract.
FSL, the CS&S Naval joint venture company has won a multimillion contract to refit the Type 23 frigate HMS Richmond. Work will start in the spring at HM Naval Base, Portsmouth and will sustain around 130 jobs.
Enhancements include fitting a new forward gun, upgrading the sonar and enhancements to enable the ship to fly Merlin helicopters.
ALQ-144s to protect Army, Navy Helicopters
Information & Electronic Warfare Systems (IEWS) received a $7.2m contract from the US military to provide additional AN/ALQ-144A Countermeasures Sets to protect US Army and Navy helicopters from infrared-guided missiles.
The contract is part of two indefinite delivery/indefinite quantity contracts, which have a combined value of $90m. More than 6,000 of the combat-proven systems are currently deployed worldwide.
“Fleet Numeral” IT contract
BAE Systems Information Technology has been awarded one of five large-business prime contract awards to perform Information Technology Engineering, Scientific, Technical and Analytical Services for the Navy’s Fleet Numerical Meteorology and Oceanography Center (FNMOC).
The contract, led by GSA Federal Technology Services (FTS), is a multiple-award vehicle, designed to furnish full-spectrum IT services in support of FNMOC’s mission to develop and provide meteorological and oceanographic products to the US Navy and other Department of Defense elements worldwide.
The services will be performed primarily at Monterey, CA and have a maximum contract value of $100m which covers the base period and option years (5 years total).
INTERNATIONAL PARTNERSHIPS - AMS
Maritime Training Services – Unified Support Contract
Recently AMS was awarded a €8.7m contract for continued support to the UK Royal Navy Surface and Submarine trainers and simulation facilities in Portsmouth, Plymouth and Faslane.
This three-year contract provides for on-site maintenance teams and Design Authority support to assist in capability upgrades and obsolescence resolution.
Radar upgrade contract with Jordan
AMS has signed a €8m contract with The Joint Chief of Staff for the Royal Jordanian Air Force. Under the contract AMS UK will upgrade S711 and S511 radar systems consoles with 23-inch colour TFT displays.
INTERNATIONAL PARTNERSHIPS - ATLAS ELEKTRONIK
Royal Swedish Navy
On January 31, 2005, a contract exceeding €30m was awarded to ATLAS ELEKTRONIK for the upgrade of 5 Royal Swedish Navy Landsort Class MCM vessels with ATLAS Integrated Mine Counter Measure Systems IMCMS-S. The systems will be commissioned into operational service between 2008 and 2009.
The highly Integrated Mine Counter Measure System IMCMS-S complies with the most demanding MCM requirements ever called for in MCM applications. It combines Minehunting, Minesweeping, Mine Disposal, Surveillance and Communication with other naval forces.
New Chinese Ferry Link
Bremen-based ATLAS ELEKTRONIK has been awarded a contract on behalf of the Chinese Maritime Administration for installation of VTS facilities covering new cross-sea ferry links between Yantai and Dalian via the Bohai Straits in the north east sector of the country, a distance of approximately 80nm (nautical miles).
Due for commissioning in November, the complete AIS (Automatic Identification System)-compatible assembly will eventually also be connected to the present ATLAS-designed radar-based VTS network at the Port of Yantai, one of China’s leading hub terminals.
It will be the 16th such network to have so far been installed by ATLAS ELEKTRONIK in China, including a system at Dalian Maritime University used to train all national VTS operators and maintenance personnel.
INTERNATIONAL PARTNERSHIPS - GRIPEN INTERNATIONAL
Hungarian Gripen fighter makes maiden flight
The maiden flight of the first Hungarian Gripen fighter took place on 16 February 2005 at Saab’s facility in Sweden. Deliveries of NATO-interoperable Gripen multi-role fighters to Hungary will take place between March 2006 and December 2007.
This is the first of the 14 Gripen aircraft (12 single seat and 2 dual seat) that Hungary will lease for a period of 10 years (2006-2016). Following this lease period, Hungary will own the aircraft in accordance with the lease and purchase agreement signed between the Swedish and Hungarian authorities in February 2003.
South African Gripen fighters enter final assembly
On 11 January 2005, an important step was taken in the Gripen for South Africa program, when the first aircraft - a dual seat - entered the final assembly stage at Saab’s factory in Sweden.
The first flight of this aircraft is scheduled for November 2005 following which, it will undergo a period of ground and flight testing in Sweden before delivery to South Africa during 2006.
South Africa has ordered 28 Gripen fighters, 9 dual seat and 19 single seat, which will be delivered in the 2008-2012 timeframe.
INTERNATIONAL PARTNERSHIPS - UNDERWATER SYSTEMS
Spearfish Life Extension Surveillance
As part of the long term planning for the economic upkeep of the Spearfish Heavyweight Torpedo, MoD has placed a £2.2m contract with Underwater Systems to undertake a series of engineering studies.
The objective of this work is to extend the operational life of the weapon before it requires a major overhaul and will become a key part of the longer term Spearfish upgrade programme.
