BAE Systems Investor Brief - April 2007
08 May 07
In This Month’s Brief:
GENERAL NEWS
- VIP visits
- Education Secretary attends BAE Systems Education Roadshow
- Harrier team receives two Min DP awards
- Gold RoSPA & Environment Awards
- E&IS forms new line of business
- New product support facility near Robins Air Force Base
MAJOR PROGRAMMES UPDATES
- Meteor environmental data gathering trials on Eurofighter Typhoon
- Typhoon gets even smarter
- Austrian Typhoon has successful first flight
- Nimrod PA04 gains its wings
- South Africa’s first Gripen fighter test programme on schedule
- Early delivery of Long Range Radar for Type 45
CONTRACT AWARDS THIS MONTH
- Submarine preservation contract
- Multi-ship US Navy destroyer maintenance contract
- Radar warning receivers provided to US Air Force and Marines
- Rear-view cameras for US Army vehicles
- US Air Force (USAF) orders more QF-4 drones
- Land Systems OMC orders
- Australian five-year R&D Alliance
- Javelin extension contract
GENERAL NEWS
VIP visits
BAE Systems Surface Fleet Solutions was proud to welcome Prime Minister Tony Blair and First Minister Jack McConnell to the Clyde on Friday 13 April and Chancellor Gordon Brown to Scotstoun on Thursday 19 April. Both visits were aimed at meeting with apprentices and graduates who are training to become the warship innovators of the future.
Commenting on his visit, The Rt Hon Gordon Brown MP said; “This is a yard moving forward with big new technology, big investment but most of all a workforce that is highly skilled, totally committed and hopeful and optimistic about the future. Everyone I have met here is smiling about the future because they know that they have done such a good job on the Type 45 that work continues for years ahead.”
Education Secretary attends BAE Systems Education Roadshow
Alan Johnson, UK Secretary of State for Education and Skills, joined students at a primary school in Hull, UK last month for the North of England launch of the BAE Systems Schools Roadshow.
The MP took some time out to speak to the students and enjoy the educational theatre performance. The annual roadshow is designed to enthuse young people about engineering and promote the variety of career possibilities available.
Harrier team receives two Min DP awards
The Harrier team has successfully scooped two out of only eight awards made each year in the UK Minister for Defence Procurement (Min DP) team awards. The awards acknowledge and commend the achievements of teams that have produced outstanding contributions in the field of Acquisition
The first award was for the UK Defence Logistics Organisation (DLO)/BAE Systems team that delivered partnered depth support at RAF Cottesmore to help sustain the Joint Force Harrier commitment to Operation HERRICK. The programme has helped the frontline squadrons manage the heavy workload of sustained operations. The team's efforts were recognised as epitomising the real agility of partnered logistics support to provide an innovative and timely response to an operational imperative.
The second award recognised the achievement of the GR9 Programme in meeting its in-service date and all of its major milestones. The GR9/T12 programme is a highly complex upgrade that has been successful in meeting its contractual commitments on time, to budget and at the required capability and a joint UK MoD/industry team was seen as a key enabler in achieving this success.
Gold RoSPA & Environment Awards
Surface Fleet Solutions has received a Gold RoSPA (Royal Society for the Prevention of Accidents) award for the second year running, in recognition of the company’s health and safety improvement plan. The team’s commitment to positive environmental management has also been awarded with a Business Commitment to the Environment award.
E&IS forms new line of business
Electronics & Integrated Solutions (E&IS) has combined two lines of business (LoB) to create a new LoB aimed at better serving the broad network systems market. Most of the former Network Enabled Solutions (NES) and National Security Solutions (NSS) came together to make up the new Network Systems (NS) line of business. Additionally, NES resources dedicated to identification and surveillance capabilities are now part of the Sensor Systems (S2) business. The reorganisation is a result of the recent Strategic Thinking exercise.
Bill Ballhaus – former president of NSS – will lead Network Systems. The new business will employ 5,000 people at more than 10 major US sites. Network Systems combines products and capabilities in advanced communications, navigation, guidance, and information systems that previously resided in several BAE Systems units.
New product support facility near Robins Air Force Base
Electronics & Integrated Solutions (E&IS) dedicated a new 6,000-square-foot facility near Robins Air Force Base to support and upgrade US Air Force equipment and software. The BAE Systems Readiness and Sustainment Center provides product life-cycle support services that include software upgrade development, depot support, and performance-based logistics (PBL).
MAJOR PROGRAMMES UPDATES
Meteor environmental data gathering trials on Eurofighter Typhoon
In March, five Environmental Data Gathering flights of the Meteor beyond-visual-range air-to-air missile on the Eurofighter Typhoon (IPA4) were carried out at Morón, Spain. The flights, which in total lasted approximately 3½ hours have provided environmental data on the front and rear fuselage stations and will be followed up later in the year with additional flights on the fuselage and wing stations.
The flights were also an important event in the Eurofighter Typhoon Test Fleet, with the 5000th flying hour achieved whilst flying the Meteor missiles.
Typhoon gets even smarter
The future roadmap for integrating new smart technologies and functionality enhancements to Typhoon has been cleared between the four customer nations (Germany, Italy, Spain, and United Kingdom) and the Eurofighter consortium. The contract, signed on 29 March, is known as the Phase 1 Enhancement Package (CP210). The work will allow the latest laser guided ‘smart' weapons to be integrated with the aircraft's Laser Designator Pod.
Austrian Typhoon has successful first flight
On 21 March 2007, the first Austrian Eurofighter Typhoon successfully concluded its first flight from Manching, Germany. The single seat aircraft, AS001 was piloted by EADS Eurofighter test pilot Chris Worning who took the aircraft through a series of basic handling manoeuvres during the hour long flight.
Nimrod PA04 gains its wings
The first Nimrod MRA4 production aircraft, PA04 has hit a major milestone three weeks ahead of programme with the joining of the new-build aircraft wing to the aircraft’s refurbished fuselage.
South Africa’s first Gripen fighter test programme on schedule
The first of South Africa’s 26 Gripen new generation fighters (SA01), is on schedule for its delivery to the customer. Since its transfer from Saab, Linköping to the Test and Flight Test Development
Centre (TFDC) at Bredasdorp in the Southern Cape in 2006, SA01 has been undergoing its South Africa specific flight test programme prior to delivery.
The first aircraft is due to be formally delivered to the customer in early 2008 with final deliveries being made in 2012.
Early delivery of Long Range Radar for Type 45
Insyte continues to exceed customer expectations on the Long Range Radar (LRR) programme for the Type 45 destroyers. Insyte’s most recent success is early delivery of LRR to BAE Systems’ shipyard in Scotstoun, Glasgow, Scotland. The radar was due for delivery in June however, following a request from the customer it was successfully delivered three months ahead of schedule, enabling early installation on the ship.
CONTRACT AWARDS THIS MONTH
Submarine preservation contract
As another example of the US Navy’s confidence in its range of ship repair and preservation capabilities, BAE Systems Ship Repair has been awarded an indefinite delivery, indefinite quantity (IDIQ) contract by the Mid-Atlantic Regional Maintenance Center (MARMC) for blast, paint and preservation work on tanks of nuclear submarines homeported in Norfolk, Virginia.
The five-year contract includes a base year plus four one-year options and presents the opportunity to bid on portions of a work package estimated at US$149m. All work will be performed by BAE Systems personnel in Norfolk.
Multi-ship US Navy destroyer maintenance contract
BAE Systems Ship Repair has been awarded a multi-ship, multi-option (MSMO) contract to maintain all DDG-51 Class destroyers homeported or visiting San Diego, California. The five-year contract includes execution planning, drydocking and pierside maintenance, repair and alteration work for seventeen ships, if all options are exercised.
The first major repair availability on the contract will begin in June 2007, with work on the USS Howard (DDG-83). Already performing on a DDG Post Shakedown Availability Continuous Maintenance Contract, BAE Systems Ship Repair will now be performing repair work on all DDG class vessels in San Diego, Norfolk and Hawaii.
The new award is a follow-on to San Diego’s existing Destroyer MSMO contract. All work will be performed at BAE Systems’ San Diego Ship Repair facility and will be completed by 2011. This award makes BAE Systems the prime contractor on eight Navy MSMO contracts across our San Diego, Norfolk and Hawaii shipyards.
Radar warning receivers provided to US Air Force and Marines
Electronics & Integrated Solutions (E&IS) has received a US$37m production contract from the US Air Force to provide 41 AN/ALR-56M radar warning receiver systems for use aboard new C-130J aircraft for the Air Force and US Marine Corps. The AN/ALR-56M detects a broad range of incoming radar signals; identifies and characterises their origin as friend or foe; and alerts the pilot when it detects threats to the aircraft.
Rear-view cameras for US Army vehicles
Electronics & Integrated Solutions (E&IS) will integrate and test the Driver’s Rear View Camera (DRVC) system for US Army combat vehicles. The DRVC uses thermal imaging to let vehicle operators and crews see behind them while inside the armor protection of their vehicle. Under a US$950,000 contract awarded by General Dynamics Land Systems, BAE Systems will integrate and test the system in preparation for an expected initial production contract.
US Air Force (USAF) orders more QF-4 drones
Electronics & Integrated Solutions (E&IS) Flight Systems has received a US$26.5m USAF contract to modify F-4 Phantom jets into QF-4 full-scale aerial targets for remote-control operation. The targets provide the Air Force with full-sized aircraft that allow aircrews to train in highly realistic air combat manoeuvring, including live weapons launch. The production effort on 16 aircraft for the Air Force and four aircraft for the US Navy will be completed by July 2009.
Land Systems OMC orders
Sweden’s defence procurement agency Försvarets Materielverk (FMV) has placed a follow-on order for 98 RG32M mine-hardened patrol vehicles worth €21m. FMV placed an initial order for 102 similar vehicles in 2005.
The US Army has ordered 169 of the South African RG31 Mk5 mine-protected vehicles worth US$63m. These are in addition to an operational fleet of 242 vehicles which were ordered through General Dynamics Land Systems, Canada.
In signing these two contracts, Land Systems OMC has achieved a record R900 million in new international sales over the past two years. In addition to the US and Sweden, other export customers that have placed orders with the company include Canada, Italy, the United Arab Emirates and the United Nations.
Australian five-year R&D Alliance
BAE Systems Australia and the Defence Science and Technology Organisation (DSTO) have signed a new strategic Research and Development (R&D) Alliance agreement to boost defence science and technology in Australia. The agreement extends and upgrades a previous three year Industry Alliance arrangement between the two organisations.
The Alliance will focus on developing a number of strategic capabilities which will enhance Australia’s defence, self-reliance and defence capability namely - Electronic Warfare, Autonomous Systems, HF Surveillance, Air Defence, Air Platforms, Mission Simulation and Training and ISR Mission Support.
Javelin extension contract
Support to the Royal Air Force's VC10 fleet has been extended for an additional two years, to the aircraft's out of service date of 2013. The extension to the JAVELIN contract, awarded by the UK Ministry of Defence and valued at £123m, was signed at RAF Wyton on 20 March.
The VC10 support arrangements are known as JAVELIN, the Joint Approach to VC10 Engineering and Logistics Integration, under which maintenance is conducted at St Athan in partnership with DARA.
The contract extension aligns the support arrangements to the revised out of service date for the VC10. The contract meets the UK Ministry of Defence’s (UK MoD) support requirements, achieves the affordability measure and also incorporates an element of the recently agreed LTPA (Long Term Partnering Agreement) funding.
