BAE Systems Investor Brief - July 2005
09 Aug 05
In this month's brief:
- Nulka Production order
- Harrier Mechanical Availability contract
- Tornado GR4 Support contract
- NAVSEA Task order
- US Army order
- C-130J Aircraft contract
- NASA awards $12.5m R&D contract
- Predator UAV
- Upgrade M113 Family of Vehicles contract
- Mod to Remanufacture and Upgrade Hercules Vehicles
- New Innovative Support Contract for AS90
- Falcon Programme
- Next Generation Submarine Command System
- ASRAAM exceeds contracted system availability
- Eurofighter Typhoon Defensive Aids Sub-System
General News
Defense Logistics Agency award
For the third consecutive year, BAE Systems Platform Solutions’ facility in Heath, Ohio, has received the Defense Logistics Agency’s prestigious Automated Best Value Award, recognizing its commitment to quality and on-time delivery. The award recognizes the facility’s attainment of a 100 percent score in quality and on-time delivery.
The Heath facility offers premier systems engineering services that primarily support ultra-high-performance inertial guidance repair, overhaul, and design upgrades for the nation’s intercontinental ballistic missile systems.
Royal Commissioning Ceremony
The Princess Royal has performed a formal re-commissioning ceremony for Amazon Hope 2, the floating medical centre for remote Amazon communities converted by Submarines from a former Fleet diving tender.
Major Programmes Update
Nimrod MRA4
On 13 July - two days ahead of the deadline - the Nimrod team submitted a production bid to the MoD for a total of 12 Nimrod MRA4 aircraft. This comprises nine 'new build' aircraft plus the conversion of the existing three aircraft development fleet to a production standard. A decision on production is likely in 2H 2005.
JSF
BAE Systems has delivered the first F-35 Joint Strike Fighter (JSF) vertical tails to programme partner Lockheed Martin. Both tails were shipped from BAE Systems site at Samlesbury in early July to Lockheed Martin's facility in Fort Worth, Texas, where they will be joined to the BAE Systems-produced aft fuselage.
This marks a significant milestone for the JSF programme and keeps the JSF team on track for 'power-on' in autumn 2005 and first flight in summer 2006.
Ship 1, Daring
Blocks D, E/F were successfully moved to the Scotstoun Berth last month and achieved 2 major Programme milestones. The Block moves went successfully, with good structural alignment between the VT Shipbuilding and the BAE Systems Blocks. The Preliminary line of sight milestone has also been achieved.
Ship 2, Dauntless
The second ship continues to progress well with the completion of several key milestones.
Astute
The Warspite test and integration facility has been formally opened at Barrow by Rear Admiral Derek Anthony, who commanded the Barrow-built submarine HMS Warspite after which the facility is named, and Rear Admiral Fred Scorse, who also served on Warspite.
The command deck for first of class submarine Astute is in the new facility and being populated with its combat systems equipment, for test and integration in the workshop before being fitted on the submarine.
Contract Awards this Month
Nulka Production order
CS&S Australia has been awarded an AUD$46m order for capability sustainment and continued production of the Nulka Active Missile Decoy System from the Commonwealth of Australia. This contract provides for additional Nulka rounds for the US Navy.
It further strengthens Nulka’s position as the world’s pre-eminent soft-kill Anti-Ship Missile Defence system and Australia’s largest current Defence export contract. Production will occur during 2006/7.
Harrier Mechanical Availability contract
CS&S MASS have received a £31m contract from the UK Ministry of Defence for the provision of Harrier mechanical support on an availability basis.
Under the contract CS&S MASS will ensure that some 440 mechanical components will be available for front line aircraft immediately they are needed. Typical components include windscreens/canopies, access panels, undercarriage doors and detailed components.
Tornado GR4 Support contract
CS&S MASS has secured a four year contract, worth £5m, covering the support and maintenance of an Avionics Ground Training Rig at RAF Marham and an In-Service Software Maintenance Facility at Boscombe Down.
NAVSEA Task order
Technology Solutions & Services successfully retendered one of its Naval Sea Systems Command (NAVSEA) contracts, when it was awarded an incrementally funded, $17m task order under a SEAPORT-e prime contract to provide engineering, technical and logistics support services to the Naval Surface Warfare Center (NSWC), Carderock Division, Acoustic Research Detachment (ARD).
The base plus three option years allows the company to continue to provide operational support services to the NSWC-ARD through 31 May 2009.
US Army order
The US Army has ordered 31 additional portable combat helicopter refueling systems for a total value of $7.6m. This order is part of a multi-year contract expected to be worth more than $100m.
The Advanced Aviation Forward Area Refueling Systems (AAFARS) are used by US troops deployed in Iraq and Afghanistan, principally to fuel AH-64 Apache, UH-60 Blackhawk, and CH-47 Chinook helicopters.
C-130J Aircraft contract
E&IS’ Electronic Protection has received a $31m production contract from the US Air Force to provide 31 AN/ALR-56M radar warning receiver systems for a new fleet of Air Force and Marine Corps C-130J aircraft and line replaceable unit (LRU) spares for the Taiwan Air Force F-16 Fighting Falcon aircraft.
The ALR-56M detects radar emissions in the environment and notifies the pilot when it detects signals that could threaten the aircraft.
NASA awards $12.5m R&D contract
E&IS Information Warfare’s Manassas, Virginia facility has received a $12.5m contract from NASA for research and development of extreme temperature technology.
Information Warfare will explore techniques to extend the performance range of semiconductor devices that will enable NASA to continue exploring and examining the surfaces of the Moon and Mars. This technology will allow data gathering in the extreme temperatures of space without providing additional and costly protective systems required to maintain the operating temperature of the semiconductor devices.
Predator UAV
National Security Solutions has been awarded a $5.4m contract modification to provide a multi-sensor, multi-look exploitation system designed to provide persistent intelligence, surveillance and reconnaissance for the Predator Unmanned Aerial Vehicle (UAV).
Under this effort, hardware, software and reports will be delivered to create this multiple-look exploitation system. At this time, $3.2m has been obligated.
Upgrade M113 Family of Vehicles contract
The U.S. Army has awarded a $90m contract to BAE Systems Land & Armaments to upgrade 356 M113 Family of Vehicles (FOVs) to the latest A3 configuration.
The vehicles produced will be the M577A3 Command Post Carrier, the M1064A3 Mortar Carrier and the M1068A3 Standard Integrated Command Post (SICPS) Carrier. The new configuration will provide greater speed and mobility, improved driver controls, improved T-150 track, and armor provisions.
Mod to Remanufacture and Upgrade Hercules Vehicles
Land & Armaments has been awarded a $143.1m contract modification to remanufacture and upgrade 59 M88A2 HERCULES Improved Recovery vehicles, and provide system technical support and spares. Under the contract modification, BAE Systems will remanufacture and upgrade 53 Vehicles for the Army and six vehicles for the U.S. Marine Corps.
HERCULES provides unparalleled capability for recovering today's 70-ton combat vehicles and answers the need for cost-effective, self-supporting heavy recovery performance.
Key upgrades from the M88A1 include improved power-assisted braking, improved steering, improved electrical system and increased engine horsepower, providing soldiers and Marines with 25 percent more towing muscle, 40 percent more lifting strength and 55 percent more winching power in meeting any mission requirement.
New Innovative Support Contract for AS90
British soldiers will get even better logistics support for their AS90 guns and the MoD will save some £29m over the next five years, thanks to a new partnering arrangement between the MoD and BAE Systems.
Levels of spares availability for the AS90, a 155mm self-propelled gun, will also be significantly improved as the result of the £60m contract awarded by MoD’s Defence Logistics Organisation to BAE Systems.
International Partnerships
Falcon Programme
BAE Systems Insyte has been down-selected as preferred supplier for the first increment of the FALCON information infrastructure programme.
FALCON will provide the British Armed Forces with a high capacity, secure information system infrastructure capability at the operational and tactical levels of command that can be deployed rapidly by air into any theatre of operations.
Next Generation Submarine Command System
The latest Insyte supplied PC-based variant of the Submarine Command System (SMCS NG) is due to be fitted throughout the entire Royal Navy submarine fleet. The UK Ministry of Defence has placed two contracts with Insyte to fit out all eleven Vanguard, Trafalgar and Swiftsure class submarines that will continue to run beyond 2008. Total contract value is £24.5m.
ASRAAM exceeds contracted system availability
ASRAAM (Advanced Short Range Air to Air Missile) has now exceeded 50,000 flying hours with the RAF, across the Tornado F3 and Typhoon squadrons. This is over six years of real flying time.
For the majority of these hours, the system availability (% of deployed missiles serviceable) has been monitored as part of the Contract For Availability (CFA). The system has far exceeded the contracted 85% level throughout.
Eurofighter Typhoon Defensive Aids Sub-System
SELEX Sensors and Airborne Systems has secured its biggest ever order, worth approximately £850m, to manufacture the EuroDASS Electronic Warfare suite for the second production batch of the Eurofighter Typhoon programme.
