BAE Systems Investor Brief - April 2006
02 May 06
In This Month’s Brief:
- US Secretary of State, Condoleezza Rice visits BAE Systems
- MoD recognizes UK TICM II team
- Australian Project Managed Organisation certification
- BAE Systems CPMC Member elected as Chairman of PMI Global Council
- Relationship Award
- E&IS Rad-Hard Computers orbit Mars
- UK National Support Centre
- Typhoon Helmet Equipment Assembly
- F-35 JSF long-lead LRIP funding approved
- Storm Shadow Full Operational Capability (FOC) declared
- $227m Mod to reset Bradley Combat Systems
- Type 45 Ship 2, Dauntless
- Signing of Joint Principles agreement
MAJOR CONTRACT AWARDS THIS MONTH
- trilogiView selected for A400M
- E&IS Countermeasures to protect Canadian Helicopters
- NITEworks Transition
- Insyte wins FALCON Increment A contract
- Demonstration phase contract for CVF Mission System
- Electromagnetic Rail Gun
- Mk 41 Vertical Launching Systems (VLS)
- First Order of 57mm Target Practice Ammo to US Navy
- Contract for M113 Add-On-Armor and Transparent Armored Gun Shields
- Contract to Provide 24 M88A2 HERCULES Spare Engines to the US Marine Corps
- $18.5m Order for 68 M1068A3s
- FV430 Contract for Availability signed
- Land Systems OMC receives order for RG-32M from Finland
GENERAL NEWS
US Secretary of State, Condoleezza Rice visits BAE Systems
On 31 March BAE Systems at Samlesbury (Lancashire UK) site was host to US Secretary of State, Condoleezza Rice and UK Foreign Secretary, Jack Straw.
The visit provided an excellent opportunity to highlight the close working relationship developed on the F-35 JSF programme and to demonstrate the world leading capabilities and the strength of people in BAE Systems.
MoD recognizes UK TICM II team
The UK Defence Logistics Organisation (DLO) has awarded E&IS’ Avionic Systems in Rochester, UK, with a Gold Primary Supplier Award for its support of the British Army’s Thermal Imaging Common Modules Class II (TICM) application test packages.
The TICM II Project is assessed every month against the British Army’s key performance indicators: time, quality, and supplier effectiveness. The TICM II modules are used in systems such as the British Army’s Challenger II main battle tank and the Phoenix unmanned surveillance aircraft.
Australian Project Managed Organisation certification
The Australian Institute of Project Management (AIPM) has assessed BAE Systems Australia as a Project Managed Organisation (PMO). This certification is awarded to organisations that have demonstrated an organisation-wide commitment to the continuous improvement of their project management capabilities.
The AIPM are the premier body for project management in Australia. The Institute has been in existence for almost 30 years and has over 5200 members. Its primary aim is to promote and progress the profession of project management in Australia across all industries, Government and the community.
PMO assessments are conducted pan-industry and assesses whether an organisation has the right structures, methodologies and training to consistently complete successful projects. This award is of particular significance given that this is the highest initial assessment ever awarded to an organisation and it places BAE Systems Australia as the second highest ranked company in Asia Pacific.
BAE Systems CPMC Member elected as Chairman of PMI Global Council
The Project Management Institute (PMI®) is focused on the needs of project management professionals worldwide. It’s membership represents a global community with more than 200,000 Project Management professionals, representing 125 countries and virtually every major industry including, aerospace, automotive, business management, construction, engineering, financial services, information technology, pharmaceuticals, healthcare, and telecommunications.
BAE Systems has been a member of the PMI for a number of years and the contribution we make was recognized on 5 April 2006 when Fred C. Payne of BAE Systems Inc. was elected as Chairman of the PMI®‘s Global Corporate Council.
Relationship Award
The partnership between Submarines and Rolls Royce Marine Electrical Systems is the first winner of a new award set up by Rolls Royce to highlight best practice across its global operations.
Twenty-two entrants representing Rolls Royce businesses worldwide were narrowed down to two finalists, the Astute partnership and a team from the US producing helicopters, for the First in Relationship award.
The partnership began in 1996 with VT Controls, who became part of Rolls Royce in 2003. It has gone from strength to strength, bringing cost reductions, increased efficiency and improving performance.
E&IS Rad-Hard Computers orbit Mars
Electronics & Integrated Solutions (E&IS) radiation-hardened computers helped navigate NASA’s Mars Reconnaissance Orbiter to successful insertion into orbit around that planet on March 10.
The mission was launched from Cape Canaveral, Fla., in August 2005, and the two BAE Systems RAD750 microprocessors onboard the spacecraft helped steer it on its 310 million-mile journey to the Red Planet.
MAJOR PROGRAMMES UPDATE
UK National Support Centre
BAE Systems will be the main beneficiary of a £100m contract awarded to Eurofighter GmbH for the provision of a UK National Support Centre for Typhoon which is to be based at RAF Coningsby. The centre will provide the RAF with a state of the art mission support facility throughout the operational life of the Typhoon.
Typhoon Helmet Equipment Assembly
Trials of the Typhoon Helmet Equipment Assembly (HEA) have been successfully carried out on Typhoon. The avionics Mk 1 helmet, manufactured by BAE Systems Rochester, was fully tracked for the first time into Typhoon’s computer systems representing a significant step forward in the HEA development programme.
F-35 JSF long-lead LRIP funding approved
The US Department of Defense has approved the advance procurement of long-lead items for the Conventional Take-Off and Landing (CTOL) aircraft in the Low Rate Initial Production (LRIP) Lot 1 contract. This is a significant milestone for the F-35 JSF programme.
Storm Shadow Full Operational Capability (FOC) declared
FOC was declared by the UK customer for MBDA’s conventionally-armed stand-off air-to-ground missile in early April. This important step in the Storm Shadow programme is the formal acknowledgement from the customer that the whole weapon system, including the missile, mission planning and data programming, satisfies the demanding criteria set for operational use.
$227m Mod to reset Bradley Combat Systems
On March 14, BAE Systems received a $227m contract modification from the US Army Tank-automotive and Armaments Command (TACOM) to reset 361 Bradley Operation Desert Storm (ODS) vehicles returning from Iraq.
BAE Systems, in partnership with Red River Army Depot (RRAD), will return a total of 361 Bradley Combat Systems (262 Bradley IFV, 55 Bradley CFV and 44 Bradley BFIST) to a combat ready status. Disassembly and component overhaul work will be performed at RRAD and BAE Systems in Fayette County, Pa. Final assembly, integration and test will be conducted at BAE Systems' York, Pa. facility.
Type 45 Ship 2, Dauntless
Ship 02 achieved the three milestones that were planned for the period, with the highlight being the successful transportation of Block A to the Govan Berth.
Signing of Joint Principles agreement
CS&S has signed a 'Joint Principles' agreement with the United Kingdom Defence Logistics Organisation (DLO) to encourage the development and delivery of effective support chains for maritime equipment and systems.
CS&S is working with the DLO to cut the cost and improve the efficiency of support to the front line forces and CS&S Naval is engaged in a number of projects under the banner of the Integrated Logistics Alliance (ILA) which is underpinned by the principle of partnership. The document was signed by Rear Admiral Paul Boissier, DG Log (Fleet) and Nigel Billingham, MD CS&S Naval, in a ceremony at Portsmouth Naval Base on 30 March.
MAJOR CONTRACT AWARDS THIS MONTH
trilogiView selected for A400M
trilogiView has been selected as the technical information browser for the A400M military transport aircraft, following an exhaustive review of available viewers in the market place.
trilogiView is a BAE Systems designed software tool that allows easy, flexible display of and access to technical documentation (incl. design and maintenance information). The win reinforces the credibility of the information systems capability.
The A400M, a European collaborative programme, has been designed and established to meet the harmonised requirements of the armed forces of Belgium, France, Germany, Spain, Turkey and the United Kingdom. The aircraft will provide tactical and strategic mobility with a current in service date of 2011.
E&IS Countermeasures to protect Canadian Helicopters
E&IS Electronic Protection has received a $10.4m contract from General Dynamics Canada to provide 31 AN/ALQ-144A(V)S countermeasures systems, spares, and integrated logistics support for 28 new CH148 Cyclone maritime helicopters.
The 144 is a lightweight countermeasure system that protects helicopters and fixed-wing aircraft against surface-to-air and air-to-air infrared missiles. More than 6,000 ALQ-144 systems are currently in use worldwide.
NITEworks Transition
The UK Ministry of Defence (UK MoD) has awarded NITEworks (Network Integration Test and Experimentation Works) a £9.8m transition contract to run from April to December 2006. This includes a budgetary sum of up to £5m for new experimental activity.
The transition contract is an important step in sustaining the skills and knowledge within NITEworks to position for a NITEworks (Future) contract from January 2007.
Insyte wins FALCON Increment A contract
Insyte has been awarded the contract for FALCON Increment A by the UK Ministry of Defence. Valued in excess of £200m, the FALCON programme will provide the Army with a replacement for its Ptarmigan System, delivering a tactical wide area system infrastructure. FALCON also encompasses Euromux and the RAF’s RTTS system and is due to enter service in 2010. The signing of this contract represents a very important step in support of network-enabled operations.
Demonstration phase contract for CVF Mission System
Insyte has been awarded a £28m contract to mature the design of the Mission System for the Future Carrier (CVF) programme. It is expected that the contract will last approximately 18 months and work will be undertaken at the Aircraft Carrier Alliance (ACA) offices at Frimley and Filton.
Electromagnetic Rail Gun
The Technology and Preliminary Design option of the 32MJ Electromagnetic Rail Gun for the Office of Naval Research (ONR) has been exercised. This contract is worth $10m and has a period of performance of 30 months. For this phase we are teamed with IAP Research and SAIC.
Mk 41 Vertical Launching Systems (VLS)
The Navy has issued an order of $6.4m for the balance of the FY06 MK 14 Canister Option. The balance consists of 133 renewed MK 14 Canisters. The total number of MK 14 Canisters for the FY06 Option including the 133 balanced is 336 with a total value of $16.2m.
First Order of 57mm Target Practice Ammo to US Navy
BAE Systems has received a $1.2m contract award from the US Navy that calls for 1,000 rounds of the company's 57mm Target Practice (TP) Ammunition, Mk 296 Mod 0. The Mk 296 Mod 0 practice rounds will be used by both the US Navy and the US Coast Guard.
Contract for M113 Add-On-Armor and Transparent Armored Gun Shields
On 6 March, BAE Systems was awarded a $32m contract for add-on-armor kits and Transparent Armored Gun Shields (TAGS) from the US Army Tank-automotive and Armaments Command (TACOM).
The contract calls for TAGS, as well as applique, bar armor and mine protection to be installed on M113 vehicles currently in service in Iraq. Production began in February and theater installation will end in August 2006.
TAGS units have been configured for a wide range of vehicles, including Bradley, M1 Abrams, M113, HMMWV, and for the Stryker Common Ballistic Shield. TAGS units are particularly effective in close-combat urban environments.
Contract to Provide 24 M88A2 HERCULES Spare Engines to the US Marine Corps
On March 6, BAE Systems was awarded a contract by US Army Tank-automotive and Armaments Command (TACOM) to provide 24 M88A2 HERCULES spare engines to the US 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.
$18.5m Order for 68 M1068A3s
BAE Systems (Land and Armaments) production contract for the upgrade of the M113 Family of Vehicles was increased by a potential of $126.3m when an option for 500 additional vehicles was added to the contract on March 31. Concurrently with the award of the option, a 68 M1068A3 vehicle option was exercised for $18m.
The M1068A3 is the Standard Integrated Command Post System and the US Army hopes that to convert two-thirds of its M577A2 (Command Post Carrier) to the M1068A3.
FV430 Contract for Availability signed
A contract has been agreed between BAE Systems Land Systems and LASS IPT, Defence Logistics Organisation for the in-service support of the upgraded power train for the next 7 years.
The £15m contract is the first to be agreed under the Defence Industrial Strategy and Partnering Arrangement between the UK Ministry of Defence (UK MoD) and BAE Systems.
The support contract guarantees in service reliability and availability guarantees for the new power train with the opportunity to extend to the complete platform. This agreement will ensure both the customer and BAE Systems Land Systems benefit from the improvements delivered by the upgrade of FV430 power train and associated long term support. The contract also provides the customer with the flexibility to modify their requirements in terms of vehicle deployment and usage.
Land Systems OMC receives order for RG-32M from Finland
During March 2005 Land Systems OMC received an order worth R160m for six RG32M vehicles from the Defence Force Material Command Headquarters of the Protection and Mobility section of the Finnish Army. The contract also includes logistics documentation, training and spare parts.
This is the second order for this type of vehicle from a Nordic country after the Swedish Army placed an order for 102 units at the beginning of last year. Delivery of the first 10 vehicles is scheduled for April with the remainder expected to be delivered by November 2006.
The RG 32M is a recent development in the successful RG 32 range already in use with peacekeeping forces, security and combat forces throughout the world. It is typically used to transport from 3 to 7 soldiers with their kit, combat stores and special purpose equipment.
