BAE Systems Investor Brief - August 2006
05 Sep 06
In This Month’s Brief:
- Atlas Elektronik
- BAE Systems recognized as “Above and Beyond Employer”
- BAE Systems earns Governor’s safety award for the ninth consecutive year
- E&IS opens new R&S facility
- Contract for F-35 Lightning II / UK Carrier integration
- Nimrod Integrated Support Contract (NISC) Phase 2 contract award
- Three year extension contract for Townsville – Rotary Wing Support
- Naval Undersea Warfare Center services contract
- E&IS to make more MIDS-LVTs
- E&IS awarded GeoEye™ contract
- BAE Systems to support Geospatial Center of Excellence
- Option to Upgrade M113 Family of Vehicles (FOV)
- Contract for 57mm Mk 110 gun for Littoral Combat Ship
- Contract mod for Bradley reset
- Contract mod to remanufacture and upgrade Bradley Vehicles
- Production definition phase for the Archer system
- Excalibur production for early fielding
GENERAL NEWS
Atlas Elektronik
Following an extended period securing regulatory clearance from the German government, the sale of Atlas Elektronik announced at the end of 2005 was completed on 3 August 2006. The business has been acquired by a consortium of Thyssen Krupp Marine Systems and EADS.
BAE Systems recognized as “Above and Beyond Employer”
BAE Systems in Anniston, Alabama, US, recently received the Employer Support of Guard and Reserve (ESGR) award for Alabama’s 3rd Congressional District for being an extraordinary employer of Reserve and National Guard employees.
BAE Systems earns Governor’s safety award for the ninth consecutive year
BAE Systems has been recognized by the Minnesota Safety Council for exceptional workplace safety performance in 2005. The company received the Council’s Award of Honor for the ninth consecutive year.
E&IS opens new R&S facility
E&IS recently opened a facility near Robins Air Force Base, US to support and upgrade Air Force equipment and software. The new E&IS Readiness & Sustainment (R&S) Center will be fully operational by January and provide product life-cycle support services that include software upgrade development, depot support, and performance-based logistics (PBL).
MAJOR PROGRAMME UPDATES
Typhoon 10,000 flying hours achieved
BAE Systems and Eurofighter GmbH celebrated a major milestone on the Typhoon programme when 10,000 air force flying hours were achieved in August. Add in another 4,550 test hours and the Typhoon fleet is fast approaching a magnificent 15,000 flying hours.
T45 Goshawk milestone
CS&S MASS have handed over the 200th T45 Goshawk fuselage to Boeing. The T45 Goshawk is the US Navy's two-seat advanced jet trainer, jointly manufactured by Boeing and BAE Systems.
The hand-over took place at the Samlesbury, UK site on 1 August in a ceremony attended by the T45 team and senior representatives from Boeing. Discussions are underway with Boeing and the US Government that aim to take the production run to over 230 aircraft and into the next decade.
Gripen arrives in South Africa
South Africa’s first Gripen new generation fighter, SA01, a fully flight test-instrumented Gripen D (two-seater), which rolled-off the assembly line in Sweden in October 2005 and flew for the first time a few days later on 11 November, is now based at the South African Air Force’s (SAAF) Test Flight Development Centre (TFDC) in the Southern Cape.
It is engaged in a comprehensive integration and development test programme designed to ‘clear’ customised South African avionics, weapons and systems. This test programme will culminate with the first South African Gripen aircraft entering service with the SAAF in 2008.
CONTRACT AWARDS THIS MONTH
Contract for F-35 Lightning II / UK Carrier integration
BAE Systems has secured a contract worth more than US$57m to lead the CVF Integration Support team (CVFIST) on behalf of the F-35 Lightning II programme. This is part of an overall F-35 programme contract to support CVF integration worth over US$100m. The BAE Systems team will work directly with the Aircraft Carrier Alliance to provide information and support to the UK MoD in the integration of the F-35 aircraft with the new UK aircraft carriers.
Nimrod Integrated Support Contract (NISC) Phase 2 contract award
The Nimrod IPT and CS&S MASS signed a three year extension to the Nimrod Integrated Support contract (NISC). The new £65m contract, NISC Phase 2 incorporates the Logistics Transformation Contract and extends the term and scope of the original NISC 1 contract out to 2011.
Under NISC 2, Tanking Transport Reconnaissance Operations (TTRO) will be incentivised to deliver platform availability to the front line, aligning to the agreements in place between the UK Defence Logistics Organisation (DLO) and Strike Command.
Three year extension contract for Townsville – Rotary Wing Support
The Commonwealth of Australia has clarified its extension strategy for CS&S Australia’s Military Air Support - Rotary Wing business in Townsville. Army Aviation Systems Program Office (AASPO) has offered a three year extension to the existing Rotary Wing contract to support Black Hawk and Chinook until 31 December 2009. This extension will secure the Deeper Maintenance capability for AASPO. The extension will allow CS&S Australia to grow the Townsville rotary wing support capability and address existing facility constraints.
Naval Undersea Warfare Center services contract
Customer Solutions has been awarded an US$8.6m contract for technical and professional support services for the In-Service Engineering and Integrated Logistics Support Department of the Naval Undersea Warfare Center (NUWC), Keyport, Washington, US. The total cumulative value of the contract could reach approximately US$54m if all four one-year options are exercised.
BAE Systems will provide professional engineering, logistics, and business management services that include combat systems and sonar engineering support, aviation training systems support, sonar training, computer-based training engineering support, technical manual control and maintenance, and performance based logistics administration support. The contract is a continuation of work BAE Systems has performed for NUWC since 1979.
E&IS to make more MIDS-LVTs
Data Link Solutions (DLS), a BAE Systems / Rockwell Collins company, has received a US$34m (£17.8m) order for 193 Multifunctional Information Distribution System-Low Volume Terminals (MIDS-LVT) to be used on US platforms and for the governments of Switzerland, Poland, Japan, Australia, and Germany. MIDS-LVT provides Link 16 real-time, secure, jam-resistant digital data and voice communications for US Navy, Air Force, and Army platforms.
E&IS awarded GeoEye™ contract
GeoEye™, the world’s largest commercial remote sensing imaging company, has selected BAE Systems’ SOCET SET® and ClearFlite® software for a project that will create three-dimensional maps for hundreds of airports worldwide. Pilots and air traffic controllers will be able to use the new maps to guide aircraft into and out of airports.
BAE Systems to support Geospatial Center of Excellence
The National Geospatial-Intelligence Agency (NGA) has awarded BAE Systems US$17m to implement its Mensuration Services Program (MSP) - an enterprise system that supports NGA’s role to provide precision geospatial imagery and products to America’s armed forces. MSP provides a better way to accurately measure and geolocate objects. Work on the program will be conducted at BAE Systems’ E&IS, National Security Solutions (NSS) facilities in San Diego and Reston, Va, US. The contract, including options, runs through 2011.
Option to Upgrade M113 Family of Vehicles (FOV)
On 28 July 2006, the US Army exercised an option for US$30.5m to BAE Systems to upgrade a quantity of 112 M1068A3 Standard Integrated Command Post (SICPS) Carriers. The BAE Systems Vehicle Upgrade Facility, located in Anniston, Alabama, US, has been upgrading the M113 FOV since 1994. The upgrade allows the M113 combat system to match speeds with the Bradley Fighting Vehicle System and the Main Battle Tank and also provides better armor protection for the soldiers. There are 5 variants of the M113 FOVs included in each of the Army’s Heavy Brigade Combat Teams.
Contract for 57mm Mk 110 gun for Littoral Combat Ship
BAE Systems has received a contract from Lockheed Martin to supply a second 57mm Mk 110 Naval Gun system. The company will deliver the system in the first quarter of 2008, which will be installed on the third Littoral Combat Ship (LCS 3) as its main armament. The first system was delivered in March for the US Navy’s first LCS, Freedom (LCS 1).
Contract mod for Bradley reset
In August, BAE Systems received a US$27.2m contract modification from the US Army Tank-Automotive and Armaments Command Life Cycle Management Command to reset 43 Bradley A2 Operation Desert Storm (ODS) vehicles returning from Iraq. When combined with a US$227.2m award for 361 Bradley vehicles announced in March and a US$27.2m contract for 44 more vehicles awarded in June, the modification brings the total fiscal year 2006 Reset contract value to US$281.6m. Work on the new contract will begin immediately with deliveries scheduled to begin in July 2007.
Contract mod to remanufacture and upgrade Bradley Vehicles
BAE Systems received a US$223.5m contract modification from the US Army TACOM Life Cycle Management Command to remanufacture and upgrade 96 Bradley Combat Systems vehicles.
BAE Systems, in partnership with Red River Army Depot (RRAD), will remanufacture and upgrade 57 Bradley A3 vehicles in infantry and cavalry configurations, 16 Bradley A3 Fire Support Team (BFIST) vehicles and 23 A2 Operation Desert Storm-based M7 BFIST vehicles.
Production definition phase for the Archer system
FMV (the Swedish Defense Materiel Administration) has ordered a US$5m contract for the next step in the Archer program. Archer is a self propelled artillery system. The contract also includes a US$7m option to be released in October 2006. The production contract for the Archer system is planned to be ordered mid April 2007.
Excalibur production for early fielding
The US Army has ordered approx. 200 Excalibur projectiles – a first-ever guided 155 mm artillery munition - for early fielding with US troops on international missions. Bofors has been responsible for the production of the projectile base section and the warhead. Final assembly of the projectile is carried out at McAlester Army Ammunition Center, Oklahoma, US. Excalibur is planned to be fielded in December 2006.
