BAE Systems Investor Brief - February 2007
09 Mar 07
In This Month’s Brief:
- Certificate of Commendation
- National Security Agency certification
- Land Systems commended for UOR work
- Insyte opens TERRIER® Training facility
- First STOVL progresses through assembly
- Aero India 2007
- Hawk AJT forges links with Greece Industry
- F-35 Lightning II Avionics Test Bed
- THAAD Weapon System
- WCSP Framework Partnering Agreement signature
- Astute Boat 4 milestone
- Type 45 programme
- LSD(A) programme
- TS&S to provide engineering and technical services to NAWC
- San Francisco Ship Repair to overhaul fleet oiler
- Second Phase of FAST Waveform
- Howitzer spares packages for Egypt
- Contract for M113 upgrade kits for Norwegian Army
- Two Bradley reset contracts awarded
- MRAPV contract awarded by US Marine Corps
- €21m order for RG32M mine hardened patrol vehicles
- $71m order for RG31 mine protected vehicles
- South Africa orders the Milan ADT anti-tank weapon system
- New construction contracts at RN training establishment
GENERAL NEWS
Certificate of Commendation
Work on affordable through-life support for the Type 45 destroyers has received the ultimate Defence Logistics Organisation (DLO) recognition – a Certificate of Commendation presented by Chief of Defence Logistics Sir Kevin O’Donoghue.
National Security Agency certification
Electronics & Integrated Solutions' (E&IS) Network Enabled Solutions (NES) has received National Security Agency (NSA) Mode 5 certification for three of its identification friend or foe (IFF) products. BAE Systems is the first Department of Defense contractor to receive the certification.
Land Systems commended for UOR work
The work Land Systems is doing across many of its sites in responding to a variety of UORs (Urgent Operational Requirements) has been recognized by Major General Richard Shirreff, General Officer Commanding 3rd Division, in a letter of thanks for all the work done to support him and his division while they were deployed in theatre.
Insyte opens TERRIER® Training facility
Insyte’s TERRIER® Training facility at the Hutton Building, Hillend was officially opened on 8 February, by Major General David McDowall, General Officer Commanding 2nd Division.
The building houses Insyte’s state-of-the-art TERRIER® Training system, created to allow the British Army to exploit the many benefits of training within Synthetic Environments.
The TERRIER® Training solution illustrates Insyte’s strong track record in armoured vehicle training, having already supplied all of the vehicle specific simulators to the Combined Arms Tactical Trainer (CATT), for Challenger 2, Warrior IFV, Warrior OPV and Scimitar.
MAJOR PROGRAMME UPDATES
First STOVL progresses through assembly
BAE Systems' F-35 assembly team at Samlesbury, UK has reached a major milestone in the assembly of the first short take off and vertical landing (STOVL) aft fuselage with both the left and right-hand sections of the aft now structurally complete.
The aft fuselage will now be installed with systems equipment including electrics, hydraulics, fuel system and cooling system. This keeps the team on track to complete the first STOVL aft fuselage in March 2007.
Aero India 2007
BAE Systems had a significant presence at the recent Aero India 2007. Typhoon, Hawk and the HERTI UAV (Unmanned Air Vehicle) system were all prominent exhibits.
Typhoon is being positioned in anticipation of an imminent RFP (Request for Proposal) from the Indian Air Force for their MRCA (multi role combat aircraft) programme.
BAE Systems already has a contract to supply 66 Hawk advanced jet trainers to the Indian Air Force and there is the potential for the Indian Navy to order an additional quantity.
The HERTI UAV system was making its first public appearance outside the UK. India has a projected huge UAV requirement and is expanding its UAV operations.
Hawk AJT forges links with Greece Industry
BAE Systems has signed a memorandum of understanding (MoU) with Hellenic Aerospace Industry (HAI), which will see HAI become involved in the Hawk advanced jet trainer (AJT) programme, if a Hawk contract is awarded to BAE Systems by the Hellenic Government.
F-35 Lightning II Avionics Test Bed
The Joint Strike Fighter Cooperative Avionics Test Bed (CATB), a 737-300 aircraft extensively modified by Electronics & Integrated Solutions, successfully completed its maiden flight on 23 January at Mojave, California. The flight capped a nearly three-year effort to transform a commercial airliner into a flying laboratory for Lockheed Martin's F-35 Lightning II stealth fighter.
The 737 aircraft, also known as the "CAT-Bird," is a flying test bed that replicates the F-35 avionics suite. The CATB will develop and verify the F-35's capability to collect data from multiple sensors and fuse it into a coherent situational awareness display in a dynamic airborne environment.
THAAD Weapon System
The Terminal High Altitude Area Defense (THAAD) Weapon System detected and intercepted an incoming ballistic missile target using an Electronics & Integrated Solutions-built seeker during a 26 January test firing at the Pacific Missile Range Facility. The test was conducted by the US Missile Defense Agency.
The test examined how the interceptor and its seeker detect an incoming target missile in order to destroy it. BAE Systems' seeker provides infrared imagery of the targeted warhead to the missile computer for use in guiding the interceptor to its target. Lockheed Martin is THAAD prime contractor and systems integrator.
WCSP Framework Partnering Agreement signature
The Defence Procurement Agency (DPA) Close Armour IPT and Land Systems achieved a key milestone with the signature of the Warrior Capability Sustainment Programme (WCSP) Framework Partnering Agreement (FPA).
The FPA establishes a framework for a long-term relationship between the two parties and, in the context of the UK Defence Industrial Strategy (DIS) and the AFV Partnering Agreement, demonstrates our collective commitment to a partnering approach on this strategically important program.
Astute Boat 4 milestone
Submarine Solutions has achieved its first Common Objective milestone for 2007, and the first relating to the fourth Astute class submarine, six days early. This was to complete preparations for the manufacturing of Boat 4.
The formal start of production on Boat 4 is likely to be in March, when full UK Ministry of Defence (UK MoD) approval has completed due process.
Type 45 programme
As the First of Class continues to progress towards commencement of contractors’ sea trials this summer, the second ship, Dauntless, has been officially launched and transferred to Scotstoun to commence her Dry Docking programme. The third ship, Diamond, continues to make good progress.
Ship 4 is also making excellent progress and benefiting from the investments within the fabrication facility – steel preparation has reached the 50% complete mark and is currently performing ahead of the Level 2 baseline and Level 3 capacity plans.
Within the combat systems element of the programme, a key milestone was achieved this month with the installation of the SAMPSON Multi Function Radar (MFR) at the MISC. Following setting to work, the MFR will be integrated with the Type 45 combat system to de-risk integration in Daring.
When SAMPSON is commissioned and integrated, the Type 45 project will have an unrivalled facility for combat system integration utilising a superb, real world, air picture gained from the proximity of commercial airports and military bases.
LSD(A) programme
Three of the Bay class have achieved in-service dates within four months, which is a significant achievement for the Ministry of Defence’s Integrated Project Team and BAE Systems, and the fourth ship, Lyme Bay, is continuing to progress well.
CONTRACT AWARDS THIS MONTH
TS&S to provide engineering and technical services to NAWC
BAE Systems Technology Solutions & Services is being awarded an $18.8m contract to provide engineering and technical services in support of the Naval Air Warfare Center Aircraft Division's Special Communications Requirements Division's Command, Control, Communications, Computers and Intelligence (C4I) communications-electronics program, including incidental materials.
TS&S has also been awarded a $9.8m contract for engineering and technical products and services in support of the Naval Air Warfare Center Aircraft Division's Air Traffic Control and Landing Systems.
San Francisco Ship Repair to overhaul fleet oiler
BAE Systems San Francisco Ship Repair has been awarded a $5.5m contract for a regular overhaul of Military Sealift Command's fleet replenishment oiler, USNS Guadalupe (T-AO 200).
The ship's primary mission is to provide underway replenishment of fuel to Navy ships at sea. Work performed during this availability will include dry-docking the ship, overhauling its main engine and recoating the ballast and oily waste tanks to ensure their preservation. The contract includes options, which, if exercised, would bring the total contract value to $7.4m.
Second Phase of FAST Waveform
The US Air Force has selected Electronics & Integrated Solutions (E&IS) and SRA International to develop the second spiral of the Flexible Access Secure Transfer (FAST) waveform into the Multifunction Information Distribution System Low Volume Terminal 1 (MIDS LVT1).
The $7m contract will enable the MIDS LVT1 to simultaneously transmit and receive both standard Link 16 and FAST waveform messages.
FAST supports missions that require dynamic network management without pre-mission planning, improves tactical communications, and adds mobile ad hoc networking (MANET) to existing Link 16 terminals prior to introduction of emerging future technologies.
Howitzer spares packages for Egypt
BAE Systems has been awarded a $16.3m contract modification from the US Army TACOM Life Cycle Management Command to provide spare parts for M109A5 self-propelled howitzers for the Egyptian Land Forces. Work on the contract will be performed at BAE Systems’ facility in York, Pennsylvania.
Contract for M113 upgrade kits for Norwegian Army
BAE Systems has received a $29.7m contract from the Norwegian Defence Procurement Division for the development and delivery of M113 upgrade kits. The contract calls for the development and production of 72 power pack kits, air conditioning system kits, suspension kits, and track system kits for Norwegian M113 vehicles, plus the provision of logistics support and spare parts.
Two Bradley reset contracts awarded
On 22 January, BAE Systems announced it had received two contracts supporting the reset of Bradley Combat Systems, totaling $412m, from the US Army TACOM Life Cycle Management Command.
The awards combined with the $1.16bn contract for the remanufacture and upgrade of 610 Bradley Combat Systems from the US Army awarded in November brings the total value of the contracts BAE Systems has been awarded on Bradley work to $3.5bn for Fiscal Years 2005 - 2007.
Approximately 620 Bradley A3 vehicles have been delivered against the Army's requirement for more than 2,000 total Bradley A3s planned for the fleet.
MRAPV contract awarded by US Marine Corps
BAE Systems was awarded an Indefinite Delivery, Indefinite Quantity (IDIQ) contract and a first delivery order for two 4x4 and two 6x6 vehicles from the company's RG33 family of vehicles for the Mine Resistant Ambush Protected (MRAP) program for testing, with possible delivery orders for up to a total of 4,100 systems.
€21m order for RG32M mine hardened patrol vehicles
Försvarets Materielverk (FMV), the Swedish acquisition agency, has recently placed an order on Land Systems OMC for a further 98 RG32M mine-hardened patrol vehicles.
This follows the contract for 102 such vehicles in 2006, the last of which will be delivered by the end of February 2007. The RG32M in Swedish service is designated “Galten”. The total order value for the 98 RG32M Galten vehicles is just over €21m and delivery will commence with 20 vehicles in August 2007 and end with the delivery of the last 18 vehicles in December 2007.
$71m order for RG31 mine protected vehicles
In early January 2007 Land Systems OMC, via General Dynamics Land Systems Canada (GDLS-C), was awarded a contract for the supply of a further 169 RG31 Mk5 mine-protected vehicles to the US Army.
The vehicles are destined for the US Army Special Operations Command (SOCOM) that represents a new customer to OMC as all previously delivered RG31s are employed by other users.
Deliveries of the SOCOM vehicles will commence with 10 vehicles in May 2007 and ramp up to 30 vehicles per month from August to November 2007 with the last 5 vehicles being delivered in December 2007. Once delivered, these 169 vehicles will bring the total number of RG31s delivered to the US Army since mid-2005 to over 400.
South Africa orders the Milan ADT anti-tank weapon system
South Africa, already one of the 40 countries currently using Milan, has placed an order worth just over €18M for the latest generation of Milan ADT firing posts and training simulators, as well as Milan 3 munitions. South Africa therefore becomes the first export customer for the Milan ADT firing post, which is compatible with the new Milan ER missile.
The new digital technologies incorporated within the ADT firing post are responsible for notable system enhancements, such as detection, reconnaissance and identification (DRI).
New construction contracts at RN training establishment
Joint venture, Flagship Training Ltd, has won two new Prime construction contracts at HMS Collingwood in Hampshire:
The Prime Construction team has been awarded a £5.5m contract by BAE Systems Insyte for the construction of a new facility to house the Maritime Composite Training System (MCTS) programme at the Maritime Warfare School, HMS Collingwood.
Additionally Flagship has received a new instruction, valued at circa £1.6m, from the Royal Navy’s Estate Organisation (RNEO) to refurbish a section of Marlborough building at HMS Collingwood for use by the Maritime Warfare Centre (MWC) when they relocate from Southwick Park and the Portsdown Hill technology Park.
