BAE Systems Investor Brief - October 2005
11 Nov 05
In This Month’s Brief:
- Typhoon update
- Typhoon Aircraft accepted by UK
- Type 45 Combat Systems
- LSD (A) Project
- Astute Bridge Fin shipped
- Successful FALCON demonstrations
- Defence Training Review bid submitted
BAE Systems Major Contract Awards this Month
- Hornet Upgrade (HUG) 2.4 program
- Fitting-Out Availability Of USS San Antonio (LPD 17)
- Upgrade Navy Prowler Jamming System
- Contract to reset more Bradley vehicles
Integrated Systems and Partnerships update
- First Hungarian Dual-Seat Gripen makes its maiden flight
- First South African Gripen rolls off the production line
- Saab and Boeing signs contract for 787 Dreamliner
- India signs contract for submarine-launched Exocet
General News
Hurricane Katrina relief efforts
BAE Systems has played a major role in establishing the command and control communications needed to support the hurricane Katrina relief efforts by helping to operate two Unified Command Suite (UCS) Operational Ready Float (ORF) communications vehicles.
Additionally, NAVAIR and BAE Systems volunteered the use of their shared asset, the Demonstration Advanced Liaison (ADVON) communications vehicle, in the Gulf Coast area to provide telephone, Internet, email, and interoperable radio communications for agencies such as the Army Corp of Engineers, FEMA, state law enforcement agencies, and local police and fire departments.
Governor’s Award for Safety Excellence
BAE Systems received the Pennsylvania Governor’s Award for Safety Excellence during the annual Governor’s Occupational Safety & Health Conference held 11-12 October. The award was presented to the Land & Armaments York, Pa., facility for its strong commitment to workplace safety and excellent safety performance.
The award is presented to employers that incorporate outstanding workplace safety initiatives and programs, and recognizes their commitment to creating safe work environments.
Major Programmes Updates
Typhoon update
The major assembly for the Typhoon front fuselage (Tranche 2) started in Samlesbury at the beginning of October. This is a significant milestone in the Typhoon programme coming just ten months after the four partner-nations signed up to Tranche 2.
Also the four Air Forces (UK, Italy, Spain and Germany) have now passed 5000 flying hours with the Typhoon aircraft.
Typhoon Aircraft accepted by UK
On Thursday 29 September Typhoon aircraft (BT013) was formally accepted by the UK Customer. This aircraft together with BT014 has been accelerated through the UK Final Assembly Line to achieve the earliest possible delivery of Twin Seat Block 2B aircraft to RAF Coningsby.
This addition will supplement the training fleet with the higher standard twin seat aircraft and will allow the RAF to deliver the flying training rates needed to achieve future Typhoon operational commitments.
Type 45 Combat Systems
LRR (Long Range Radar) installation at the MISC (Maritime Integration Support Centre) is complete. Informal integration with the CMS (Combat Management Systems) has commenced.
LSD (A) Project
The Naval Ships team continues to support the four Ship Bay Class programme, working with both the DPA and Swan Hunter. For Naval Ships, the project has been a success in terms of design integration, build and final commissioning leading to delivery in December 2005.
Customer satisfaction for this programme is at an all time high and demonstrates that Naval Ships and the DPA are aligned to deliver a successful programme. This success will help position the company on future programmes.
Astute Bridge Fin shipped
The bridge fin for first of class submarine Astute has been shipped onto the submarine hull six months earlier than programmed, on 14 October instead of March 2006.
This will enable earlier diesel engine trials, bringing the submarine to life much earlier in the programme and enable a significant amount of other work to be undertaken earlier.
This initiative is the latest in a drive to accelerate the Astute programme in order to ensure the August 2008 delivery date.
Successful FALCON demonstrations
FALCON will provide the British Armed Forces with a new high capacity, secure information system infrastructure at the operational and tactical levels of command that can be deployed rapidly by air into any theatre of operations. FALCON meets the requirements for greatly improved data throughput, multi-level security, mobility and manpower efficiencies.
Insyte was down-selected as preferred supplier for the first increment of FALCON in July 2005. The BAE Systems FALCON team continues to build on the relationship it has developed with the customer, working closely with them to produce a high quality Main Gate Business Case (MGBC), with submission to the Investment Approvals Board (IAB) by mid-November 2005. Contract award is expected in early 2006.
Defence Training Review bid submitted
The MC3 Training consortium, of which BAE Systems is a part, submitted their bid for the Defence Training Review (DTR) in October. The DTR programme is concerned with identifying more efficient ways of training service personnel and creating more efficient training environments. The DTR programme has a potential multi-billion Pound value stretching over 25 years. The results are expected in June 2006.
BAE Systems Contract Awards this Month
Hornet Upgrade (HUG) 2.4 program
Northrop Grumman and BAE Systems have been awarded a contract to supply a new generation target designation system for the F/A–18 aircraft under the Hornet Upgrade (HUG) 2.4 program.
Fitting-Out Availability of USS San Antonio (LPD 17)
BAE Systems Ship Repair has been awarded a $5.1m contract by the Naval Sea Systems Command for the Fitting Out Availability (FOA) of USS San Antonio (LPD 17), the first of the new LPD 17 class of ships. The vessel is an amphibious transport dock ship to be home ported in Norfolk after commissioning this fall.
The work is scheduled to begin in January 2006 and will be completed in February. The contract also includes options for Post Shakedown Availabilities (PSA) for USS San Antonio, USS Mesa Verde (LPD 19) and USS New York (LPD 21). The total value of the contract could reach nearly $35m if all options are exercised.
Upgrade Navy Prowler Jamming System
The U.S. Navy has awarded Electronics & Integrated Solutions (E&IS) a $9.5m contract to upgrade its USQ-113(V)3 system. The system provides communications analysis and jamming capabilities to the U.S. Navy’s EA-6B Prowler electronic warfare aircraft, which has been active during Enduring Freedom in Afghanistan and Iraqi Freedom. The upgrade work will be performed at E&IS facilities in Hudson, New Hampshire; Lansdale, Pennsylvania;
Contract to reset more Bradley vehicles
BAE Systems has recently been awarded an $11m contract for reset and modification for 15 M7 Bradley Fire Support Team Vehicles and one Bradley M2A3 Bradley vehicle, and to add 131 Vehicle Intercom Systems Kits for Operation Desert Storm vehicles.
BAE Systems is responsible for Phase II vehicle teardown, shipment of components to repair facilities, vehicle assembly, quality assurance checks, configuration management, and vehicle fielding.
Integrated Systems and Partnerships update
First Hungarian Dual-Seat Gripen makes its maiden flight
In another major milestone for the Gripen export programme, the maiden flight of the first Hungarian dual-seat Gripen aircraft took place on 27 October 2005 at Saab in Linköping, Sweden.
Following this maiden flight, the aircraft now enters a period of ground and flight-testing to verify that all systems are operating in accordance with the Hungarian Gripen configuration plan. This is the first of two Gripen dual seat aircraft, together with twelve Gripen single seat aircraft, that Hungary are leasing from the Swedish government for a period of 10 years, before taking ownership of the aircraft under the terms of the agreement signed between the Swedish and Hungarian authorities in February 2003.
First South African Gripen rolls off the production line
The Gripen export programme took another significant step forward with the roll-out of the first Gripen for South Africa. In a ceremony held at Saab’s facility in Linköping on 28 October, the first Gripen for South Africa, a dual-seater, was unveiled.
This is the first of 28 Gripen fighters - 9 dual seat and 19 single seat – ordered by the South African government for delivery between 2008 and 2012.
Saab and Boeing signs contract for 787 Dreamliner
Saab Aerostructures has signed a contract with Boeing for the design, development and manufacture of Large Cargo Doors, Bulk Cargo Door and Access Doors for the Boeing 787 Dreamliner. The order value is initially estimated at $100m, although revenues over the lifetime of the agreement are expected to exceed this value.
India signs contract for submarine-launched Exocet
On 6 October, the Indian Ministry of Defence awarded MBDA a contract to supply the Exocet SM-39 weapon system to arm their Navy’s new Scorpène conventional attack submarines. The contract involves the provision of the Exocet SM-39 missile for the six new-generation submarines ordered from Armaris.
This latest purchase of the Exocet missile makes India the 34th customer for the anti-ship missile system. To date, MBDA has sold more than 3,300 Exocet missiles in all configurations since the missile first entered service.
