BAE Systems Investor Brief - August 2005
01 Sep 05
In this month's brief:
BAE Systems Contract Awards this Month
- Harrier Mechanicals contract
- Contract for Helicopter Controls
- Black Hawk Engine Controls contract
- C-130J Warning Receivers
- Contract Mod for FCS Robotic Vehicle
- Contract to Rebuild Bradleys
- Olifant MK2 Main Battle Tank Upgrade order
- More Czech Republic Gripen Fighters Delivered
- Radar Warning Equipment for Tornado
- Insyte Down-Selected as Preferred Supplier for MCTS
- Seawolf Block 2 Enters Service with the Royal Navy
- First FOC Standard Storm Shadow delivered
General News
Sale of Precision Aerostructures Inc.
During August, the sale of Precision Aerostructures Inc. based in Wellington, Kansas, USA was confirmed. The acquirer is TECT Aerospace of Wichita, Kansas USA. Precision Aerostructures Inc. is a fabrications and machining facility that specialises in long-bed machining.
Major Programmes Updates
Nimrod MRA4
The flight trials programme achieved a number of "firsts" in July and August:
- MRA4 completed its first overseas detachment when PA02 spent ten days at the Italian Air Force base at Sigonella in Sicily for preliminary hot weather trials.
- Other achievements included the completion of the first 100 flight hours; conducting three sorties in one day; a RAF pilot captaining an MRA4 for the first time and the first flypast of an MRA4 over its future operating base, RAF Kinloss in Scotland.
- August finished with a flourish when the third and final development aircraft, PA03, had a successful first flight on 29 August.
- The delivery of the JSF Horizontal Tails to programme partner Lockheed Martin took place in August 2005. Following the already successful delivery of the aft fuselage and vertical tails to Lockheed Martin's facility in Fort Worth, Texas, this marked the final BAE Systems airframe delivery for the first JSF aircraft.
- Electronics & Integrated Solutions’ (E&IS) Electronic Protection (EP) has successfully completed the first flight test of its electronic warfare (EW) system for the F-35 Joint Strike Fighter (JSF). The system will serve as a primary source of situational awareness for JSF pilots. E&IS is responsible for the JSF’s EW systems suite which also includes advanced low-observable apertures and advanced countermeasures systems.
- The MoD’s Hawk Mk 128 Advanced Jet Trainers began the first in a series of flights on July 27 at Warton. The first flight, which lasted 1 hour and 18 minutes, was eight weeks ahead of schedule, to budget, and represented a major milestone in the UK AJT programme.
- On Friday 26 August BT001, the first Hawk Mk129 for Bahrain made its maiden flight from Warton. Another significant milestone for the Hawk programme.
- As the first of class Astute submarine nears completion of its hull form in Barrow’s Devonshire Dock Hall, construction has formally got underway on the crucial reactor area of second of class Ambush. An anchor milestone to deliver Unit 5, the hull section that will contain the reactor compartment, to the construction hall by 31 August has been achieved 30 days early.
- Anchor milestones are chosen with the Ministry of Defence as key achievements to demonstrate that the programme is on track. This success follows the early achievement of the first five of 11 Astute 2005 programme common objectives.
BAE Systems Contract Awards this Month
Harrier Mechanicals contract
Following submission of a proposal to the Defence Logistics Organisation (DLO) in June, a contract for the Harrier Mechanical parts was awarded to CS&S MASS. The value to CS&S Operational Services will be around £25m. Under the contract BAE Systems will ensure that some 440 mechanical components will be available for front line aircraft as soon as they are needed.
Contract for Helicopter Controls
General Electric has awarded Platform Solutions an $83.5m contract to develop and produce a Full-Authority Digital Electronic Control (FADEC) for its new T700-701D engine, which will power the US Army's UH-60M and AH-64D helicopters.
Non-recurring engineering, development, and production of over 3,000 units will continue through 2017. This selection is especially significant as the Army has designated the T700-701D as its single-configuration engine for future rotorcraft.
Black Hawk Engine Controls contract
BAE Systems has received a US Army Aviation and Missile Command contract to produce spare electronic control units (ECUs) for the GE T700 engines installed on UH-60A Black Hawk helicopters. The 400 spares are valued at $10.6m.
This contract follows the initial $4.9m order for 135 spare ECUs, which was completed in September 2004. Delivery completion for the current order is scheduled for March 2009 and future orders could bring the total quantity under this contract to 1,200.
C-130J Warning Receivers
The US Air Force has awarded Electronics & Integrated Solutions (E&IS) a $31m production contract to provide 31 AN/ALR-56M radar warning receiver systems for a new fleet of Air Force and Marine Corps C-130J aircraft. The contract also includes spares for the Taiwan Air Force’s F-16 Fighting Falcon aircraft.
Contract Mod for FCS Robotic Vehicle
Land & Armaments has been awarded a $122.3m contract modification for the transition effort for two Armed Robotic Vehicle (ARV) variants for the US Army’s Future Combat Systems (FCS). This contract modification increases the total authorized value of the System Development and Demonstration contract to $311.3m.
BAE Systems was selected by the FCS Lead Systems Integrator to design and develop two ARV variants to provide FCS-equipped Units of Action with the ability to see and strike the enemy first, while offering soldiers unprecedented protection and survivability during reconnaissance and assault missions.
Contract to Rebuild Bradleys
Land & Armaments has been awarded a $70.1m contract modification from the US Army to rebuild Bradley Combat System vehicles to new condition. Working in conjunction with the Army’s Red River Army Depot (RRAD), BAE Systems will return 101 Bradleys to combat ready status for the U.S. Army’s 1st Cavalry Division.
Olifant MK2 Main Battle Tank Upgrade order
Land Systems OMC has been awarded a follow-on contract for approximately ZAR 171m (£15m) by Armscor, acquisition agency of the South African Department of Defence, for the upgrade of Olifant MK2 Main Battle Tanks (MBTs).
This is the single largest order awarded by Armscor to Land Systems OMC in over 12 years and follows an initial ZAR 124m (£11m) order received in September 2003. Delivery of the upgraded MBTs is scheduled for 2006/2007 and will ensure that the South African Army will be equipped with a highly effective MBT.
International Partnerships
More Czech Republic Gripen Fighters Delivered
August saw the delivery of a further 6 Gripen new generation, multi-role fighter aircraft to the Czech Republic Air Force, when they arrived at the Caslav air base in the Czech Republic following a one hour flight from Sweden.
By the end of August, a further two Gripens will be delivered, which will complete the Czech Air Force complement of fourteen aircraft that will be leased until 2015.
The Czech Republic will be the first NATO country to operate the fourth generation Gripen fighter and will receive the latest C and D versions of the Gripen aircraft, which are equipped with full colour cockpit displays, a retractable air-to-air re-fuelling probe and are fully NATO-interoperable.
Radar Warning Equipment for Tornado
Saab Avitronics has received a production order from EADS Deutschland GmbH, acting on behalf of Panavia Aircraft GmbH, for series production of Radar Warning Equipment for German Tornado aircraft. The order is worth approx 1 billion SEK (110 million Euros). The contract is a follow-on order to the adaptation and qualification program awarded in 2001. Deliveries of production units will start by the end of 2006 and continue until 2009.
Insyte Down-Selected as Preferred Supplier for MCTS
Insyte has been down-selected as preferred supplier for the first phase of the Maritime Composite Training System (MCTS) programme. The SEABRIDGE team, comprising Insyte as Prime Contractor along with partners Aerosystems International, EDS, MDA, SAIC and Serco will now work closely with the UK MoD to ensure a contract award that allows the team to meet the key requirement for Type 45 training in 2007.
The MCTS Phase 1 programme will deliver the Royal Navy with a new shore based Warfare Operator Training Capability that meets the needs of Type 45 and legacy surface platforms. The MCTS offers a more flexible approach to training and supports the aims of the Navy’s Versatile Maritime Training concept. MCTS facilities will be situated at both the Maritime Warfare School Collingwood and the Devonport Waterfront.
Seawolf Block 2 Enters Service with the Royal Navy
On 31 July, the Seawolf Block 2 air defence system entered service with the UK’s Royal Navy. The new Block 2 variant operates with existing Seawolf missile systems and features a range of new technologies that have improved missile performance and, more significantly, have allowed for the provision of important future upgrades. Drawing on its expertise in modular design, MBDA incorporated existing in-service technologies within the company’s portfolio of missile systems.
A notable example of this was the use in the multi-chip hardware support module. Known as the Butler Chip, this support module was developed for the ASRAAM air-to-air system and was awarded a Queen’s Award for Innovation last year.
First FOC Standard Storm Shadow delivered
Following the successful ground firing carried out in France on 21 April, MBDA has now delivered the first Full Operational Capability (FOC) Storm Shadow air-launched stand-off missiles, fitted with an enhanced Safety and Arming Unit, to both the UK and Italian customers.
Further new build deliveries will be to the FOC standard with Initial Operational Capability (IOC) missiles being upgraded during the remainder of the production programme.
