BAE Systems Investor Brief - September 2006
02 Oct 06
In This Month's Brief:
- 'Intelligent' UAV to be put through its paces
- Warship Availability Service Project (WASP)
- SAMPSON milestones
- Type 45
- CVF project
- Astute
- Astute new build strategy
MAJOR CONTRACT AWARDS THIS MONTH
- US Navy Ammo Handling contract
- Contract to support Surface Combatants
- Providing precision imagery to armed forces
- Developing the net-centric targeting system
- Air Force chooses E&IS for F-16 stores testing
- DARPA award seeks to increase wireless network performance
- US Navy contract for production and delivery of 57mm ammunition
- Canister contract
- Contract to provide heavy equipment recovery vehicles to US Marines
- Updating Saxon patrol vehicles
- Further RG31 contract
- Production Definition Phase for the Archer System
- Indian Army spare parts order
MAJOR PROGRAMME UPDATE
'Intelligent' UAV to be put through its paces
On Wednesday 14 September, BAE Systems signed an agreement to work with the Royal Air Force's Air Warfare Centre on a project to integrate the company's HERTI Unmanned Air Vehicle (UAV) System into UK military exercises. This will be the first time a fully-autonomous UAV has been introduced into military exercises in the UK.
Called 'Project Morrigan', this programme is initially intended to run for two years. It will enable the introduction of BAE Systems' fully-autonomous HERTI System into progressively more complex military exercises, in order to better understand the contribution autonomous UAV systems can make in the joint battlespace.
Warship Availability Service Project (WASP)
CS&S Naval has embarked on a project to investigate and help shape how warship availability support contracts could work in the future. The Warship Availability Service Project (WASP) is using a systems engineering approach based on the CS&S Integrated Solution Business Model (ISBM), to develop a generic warship support solution.
SAMPSON milestones
Insyte has achieved two major milestones in the SAMPSON radar programme, demonstrating confidence in the delivery schedule and readiness to progress to the next level of the integration programme. The first system has been installed at the Eskmeals sea level test site in Cumbria and commenced the setting to work phase.
The second system, following acceptance at the end July, has been despatched to Portsmouth Dockyard in readiness for installation on the Longbow Sea Trials Platform. This contract is for the provision of three prototype Radars to qualify the PAAMS Missile System and Combat System, for the first of class Royal Navy Type 45 Destroyer, which enters service in 2009 and a further five production Radars.
Type 45
Naval Ships took a significant step towards the November milestone – to start diesel generator trials on Daring – when the Aft Diesel Generator ran successfully. The First of Class continues to progress well, with Pre-Fitting Out (PO1) complete in all compartments.
In terms of systems integration, a major software build for the Combat Management System was successfully installed in the MISC and PAAMS Integration Facility to support the combat system integration de-risking programme. This is the build of software that will be used through PAAMS firing trials in the Longbow trials barge, for integration of the combat system in Daring, and will proceed into service when the Ship is accepted.
CVF project
Work is ongoing to meet the deadlines for Main Gate in partnership with Insyte, Submarines and the CVF Alliance Partners.
Astute
Submarines has achieved its first 2006 common objective bonus milestone by declaring two days ahead of target that the Barrow site is ready to receive the nuclear fuel that will power first of class submarine Astute. Readiness was confirmed by the civil and nuclear regulators.
Astute
Outfit of equipment on second Astute class submarine Ambush is significantly more advanced than Astute at the same stage, thanks to a new build strategy. This comprises a big increase in modular build, and outfitting submarine units in the vertical, instead of horizontal “shipwise” position.
MAJOR CONTRACT AWARDS THIS MONTH
US Navy Ammo Handling contract
Technology Solutions & Services was awarded a $28.5m, five-year contract to provide Ammunition Handling and Ordnance Management Services for Naval Magazine Pearl Harbor and Pearl Harbor Naval Shipyard (NAVMAG PH) for the Department of the Navy Fleet and Industrial Supply Center Pearl Harbor.
BAE Systems will receive, renovate, maintain, store, inspect and issue ammunition, explosives, expendable ordnance items and weapons, and technical ordnance material. The work will be performed on the Island of Oahu, Hawaii at NAVMAG PH's Lualualei Branch and West Loch.
Contract to support Surface Combatants
BAE Systems Hawaii Shipyards won the Surface Ship Multi-Ship Multi-Options (MSMO) contract for a value of $272m/7 years. This MSMO contract will cover work on all surface combatants in Hawaii, including guided missile destroyers, frigates and cruisers.
Providing precision imagery to armed forces
The National Geospatial-Intelligence Agency (NGA) has selected E&IS' National Security Solutions to implement its Mensuration Services Program -- a $17 million program to help NGA provide precision geospatial imagery and products to America's armed forces. The contract, including options, runs through 2011.
Developing the net-centric targeting system
The National Geospatial-Intelligence Agency (NGA) has selected E&IS' National Security Solutions to develop a web-based surveillance and targeting system. The system will rapidly identify battlefield targets and other possible threats and greatly speed decision-making by intelligence analysts and military personnel.
NGA awarded BAE Systems a $47 million contract, including options, to deliver the Global Net-Centric Surveillance and Targeting (GNCST) system. “Gun Coast,” as it's commonly called, uses a Web-based interface on a secured computer network to gather real-time data from multiple intelligence sensors and process it into useable data for the military and intelligence communities.
Air Force chooses E&IS for F-16 stores testing
E&IS' Electronics Systems Product Support (ESPS) has been awarded a $9.6 million contract by the U.S. Air Force to provide 41 Stores Station Testers (SST) for support of the F-16 Fighting Falcon. The SSTs provide both flight line and shop test and diagnostic capabilities for the Stores Management System (SMS) and the F-16 weapons system.
DARPA award seeks to increase wireless network performance
Electronics & Integrated Solutions has won a Defense Advanced Research Projects Agency (DARPA) contract to develop a wireless technology that increases capacity and performance of wireless networks. E&IS will develop DARPA's Interference Division Multiple Access (IDMA) communications system — an ad hoc wireless communications system that lets multiple users simultaneously communicate on the same channel without centralized control or infrastructure.
US Navy contract for production and delivery of 57mm ammunition
BAE Systems has been awarded a $6.2m contract by the US Naval Surface Warfare Center for the production and delivery of 57mm pre-fragmented, programmable, proximity fused (3P) rounds and corresponding Mk 295 MOD 0 cartridges and 57mm Mk 8 clips. The company will deliver the ammunition in September 2006.
Canister contract
ASD received a $15.6m contract to manufacture 155 new and to renew 75 MK 13 Canisters. This is the first purchase of new MK 13 Canisters in seven years. As the US Navy has depleted its store of expended canisters, they have now shifted to new MK13 canister purchases to satisfy FMS requirements.
Contract to provide heavy equipment recovery vehicles to US Marines
Land Systems has been awarded a contract modification worth $5.1m from the US Army TACOM Life Cycle Management Command to provide two M88A2 HERCULES recovery vehicles for the Marine Corps.
Under the contract, BAE Systems will remanufacture and upgrade two additional HERCULES, which will bring the total number of M88A2's purchased by the Marine Corps to 66 vehicles. Work on the contract begins immediately at the company's York, Pa. facility with delivery of both vehicles scheduled for December 2007.
Updating Saxon patrol vehicles
BAE Land Systems has recently been awarded an Urgent Operational Requirements (UOR) worth £1.7m to upgrade 20 Saxon patrol vehicles to accommodate enhanced braking and steering, create ambulance variants with full medical support installations and add a range of other enhancements including tailored bar armor, air-conditioning, electronic countermeasures and re-arranged stowage and ergonomics.
The 20 vehicles will be completed by end of October 2006 and when finished will consist of 9 Patrol troop carriers, 4 public order vehicles and 7 ambulances. The current fleet of 680 Saxon is in two principle forms, a General War Role (GWR) and Patrol.
Further RG31 contract
The Canadian government through GDLS-Canada has placed an additional order on Land Systems OMC for the supply of an additional 25 RG31 Mk3 mine protection vehicles. The terms and conditions and the vehicle configuration are, with minor changes, the same as the previous 50 vehicles which were delivered by end May 2006. The RG31 vehicles delivered earlier in 2006 are currently successfully deployed in theatre and are credited with having saved several lives. The integrated logistic support for the Canadian RG31 fleet is on schedule including applicable logistic manuals for training and vehicle operation, and spares supply activities.
Production Definition Phase for the Archer System
FMV (the Swedish Defense Materiel Administration) has confirmed a $5m contract for the next step in the Archer program from BAE Systems Bofors. Archer is a self propelled artillery system. The contract also includes a $7m option to be released in October 2006.
Indian Army spare parts order
In the late 80s and early 90s Bofors delivered 400 field howitzers to India. Now the guns are in need of spare parts. So far the Indian Army has ordered $20m of spare parts during 2006.
