BAE Systems Investor Brief - May 2005
02 Jun 05
In this month's brief:
- DEFENCE FORMAL MESSAGING SYSTEM CONTRACT EXTENSION
- TORNADO ACCIDENT DATA RECORDER SYSTEM CONTRACT
- CONTRACT FOR TYPE 45 DOCUMENTATION WORK
- M777 CONTRACT
- DOPPLER RADAR CONTRACT
- R-IAIS ORDER
- U.S. NAVY TRACK ORDINANCE CONTRACT
- ENGINEERING SERVICES TO NAVAL AIR WARFARE CENTER
- NEW JETSPARES AND MACRO SPARES SUPPORT CONTRACTS
- ATC WINS RESEARCH PROGRAMME
- WINDFARM RADAR MITIGATION
GENERAL NEWS
Formation of Integrated System Technologies (Insyte)
On 3 May, following the completion of the Eurosystems transaction and the dissolution of the Anglo-Italian joint venture AMS, BAE Systems has formed a new business unit called Integrated System Technologies (Insyte).
Insyte brings together the assets and expertise of AMS UK and C4ISR. Its principal mission is to become the first choice for the provision of integrated mission-critical systems.
SELEX Sensors and Airborne Systems
Following completion of the Eurosystems transaction, about 60% of the former BAE Systems Avionics Group and Galileo Avionica are coming together into a new company called SELEX Sensors and Airborne Systems.
SELEX Sensors and Airborne Systems, controlled 75% by Finmeccanica and 25% by BAE Systems, includes Finmeccanica’s defence electronics sector, which includes AMS Italy, Selenia Communications and Elsag.
MAJOR PROGRAMMES UPDATE
Nimrod MRA4
On Thursday 12 May, the first Nimrod MRA4 to appear in RAF livery flew into our Woodford, UK, site from Norwich International Airport, UK, with a joint RAF/BAE Systems aircrew.
Between them, the two Nimrod MRA4 development aircraft, PA01 and PA02, have now notched up 61 hours of flight trials, with the longest flight to date lasting 4hrs 10mins.
PA03 is scheduled to join the trials programme in late summer, after its first flight.
Typhoon
The Government of Singapore have notified BAE Systems of their intentions regarding the next phase of their Next Fighter Replacement Programme (NFRP). Although Typhoon has not been shortlisted, we continue to seek further dialogue with the Customer.
Hawk - Advanced Jet Trainer (AJT)
The first RAF Advanced Jet Trainer Hawk cleared engine ground running trials at Brough on 6 May, a major milestone for the programme.
JSF
BAE Systems has successfully delivered the first F-35 Joint Strike Fighter (JSF) aft fuselage.
Designed, manufactured and assembled in the UK, the aft fuselage was delivered on-time, to the final assembly line at Lockheed Martin's Fort Worth facility.
Type 45
Clyde based production work on the third Type 45 Destroyer, to be known as HMS Diamond, officially commenced on Monday 23 May 2005. Rear Admiral Ric Cheadle, Controller of the Navy, performed the ceremony in the Steelwork Centre in Govan, UK.
Astute
The Installation rate for the 46km of pipes needed on first of class submarine Astute has been quadrupled, from 100 pipes per week to a rate exceeding 400 pipes per week. This strike rate is essential to achieve the volume of pipe installation required before closure of the submarine units imposes constraints on pipe fitting.
Pipes for follow-on Astute boats will increasingly be built into major modules, which will have a significant impact on the programme compared with fitting the pipes individually.
One module planned, of more than 300 pipes for the boat’s Forward Engine Room, will be the biggest pipe module ever fitted on a UK submarine.
CONTRACT AWARDS THIS MONTH
Defence Formal Messaging System contract extension
CS&S Australia’s Information Architectures business has been awarded a (AUD) $2.7M one-year extension to the Defence Formal Messaging System contract by the Australian Defence Force.
The contract involves the maintenance of the Defence Integrated Secure Communications Network messaging network and support of BAE Systems’ Mercury Military Messaging System.
Tornado Accident Data Recorder System contract
CS&S MASS has secured an agreement worth up to £6.5M to provide a new Accident Data Recorder System under the Tornado GR4 Capability Enabling Contract.
The programme is key to sustaining the operating capability of the aircraft in the future and demonstrates our ability to meet the customer's challenging programme needs.
Contract for Type 45 documentation work
CS&S Naval has won a contract valued at approximately £8.5M to produce the ship system and warship level technical handbooks for the first Type 45 - HMS Daring.
Using trilogi, the team will be producing the first fully electronic technical publication suite to support a major UK warship.
M777 contract
The M777 contract for Full Rate Production was awarded on 22 March for 495 guns valued at $834.2M plus $9M increase to the Low Rate Initial Production (LRIP) contract for funding of long lead items for the FRP contract.
The US Army is seeking to fund an additional Stryker Brigade. If successful this will lead to a requirement of 32 additional M777 guns.
Doppler Radar contract
BAE Systems has been awarded a $2 million contract to provide a Continuous Wave (CW) Doppler radar to the United Kingdom Aberporth Test and Evaluation Range, operated by QinetiQ. The contract is the first order for a new CW Doppler radar product line and will be delivered next year.
R-IAIS order
BAE Systems National Security Solutions received an order from the Netherlands valued at $8.7M to produce an R-IAIS station (Rack Mount – Improved Avionics Intermediate Shop) and upgrade kits for F-16 avionics testing and maintenance.
U.S. Navy Track Ordinance contract
Naval Operational Logistics Support Center (NOLSC) awarded BAE Systems Information Technology an $8M re-compete to provide a full range of software development support implementing NOLSC's Ordinance Information System (OIS).
OIS is a web-based application providing world-wide tracking and visibility of the Navy's non-nuclear ordinance assets, in terms of expendable non-nuclear ordinance requirements, assets, productions, movement, storage, production or use of conventional ammunition.
Engineering Services to Naval Air Warfare Center
BAE Systems Technology Solutions Sector was awarded a $16.3M contract modification for 279,000 man-hours of engineering and technical services to support C4I Communication-Electronic equipment and systems. Work will be performed in California, Md., through April 2006.
BAE Systems Technology Solutions was also awarded a separate $17.9M modification for engineering and technical services for Communication-Electronic (C-E) Platforms, Systems, and Subsystems. The estimated level of effort is 270,400 man-hours to be performed primarily in St. Inigoes, Md. and Chesapeake, Va.
New JetSpares and MACRO spares support contracts
Regional Aircraft has announced $30 million of new business for its JetSpares and MACRO ‘spares by the hour’ programmes from customers such as National Jet Systems (Australia), CityJet of Ireland, Asian Spirit (Philippines), South African Airlink, Malmo Aviation (Sweden) and Atlantic Airways (Faroe Islands).
ATC wins research programme
The Advanced Technology Centre (ATC) has successfully received funding for project SEALS (Stress Engineering for Application to Large Structures), a manufacturing technology programme to further develop techniques for controlling distortion in the welding process.
Windfarm Radar Mitigation
Insyte has recently received a significant contract to demonstrate the mitigation of windfarm interference with air traffic control radars. The contract comes from the Department of Productivity Energy and Industry with part funding from the British Wind Energy Association (BWEA).
INTERNATIONAL PARTNERSHIPS
MEADS Agreement
On 20 April Germany confirmed it would proceed with funding for the MEADS (Medium Extended Air Defense System) programme. With Italian and US Government funding already secured for full-scale development of the missile defence system, ratification by Germany paved the way for the trilateral MoU and subsequently full contract award.
This very substantial contract, which is scheduled to be awarded in late May by the NATO contracting authority, NAMEADSMA, is split between the three MEADS industrial partners (including MBDA Italy).
PAAMS
MBDA, as Prime Contractor and System Design & Integration Authority for the PAAMS (Principal Anti-Air Missile System) system for the Type 45 Destroyer, is implementing a rigorous and phased approach to the integration proving of this highly complex system.
Most of the early integration de-risking trials, centred at the MBDA PAAMS Integration Facility (PIF), have now been completed, with testing focusing on both the internal PAAMS C2 and Sampson Multi-Function Radar interfaces and the external interfaces with the Combat System.
The trials have been highly successful with early exposure and resolution of several issues and all parties have significantly benefited.
Sting Ray PLUS
The Sting Ray Mod 1 PLUS proposal has been accepted and on 28 April we agreed with UK Defence Procurement Agency (DPA) a £4M Contract Amendment to the Sting Ray Main Production Order (MPO) contract.
Spearfish ISS
Underwater Systems (UWS) has been awarded a £65M contract for the 3 year In Service Support (ISS) of the Royal Navy’s Waterlooville supplied Spearfish heavyweight submarine-launched torpedoes.
