BAE Systems Investor Brief - July 2007
07 Aug 2007
In This Month’s Brief:
GENERAL NEWS
- NATO honour awarded to Insyte employee
- F-22 Collier Trophy Award
- Best supplier recognition, Gold Award for E&IS
- Land Systems Munitions hosts UK General
- Leading defence chiefs visit BAE Systems
- Acquisition of Information Science Consultants Ltd (iSC)
MAJOR PROGRAMMES UPDATES
- Green light for Carrier and Warship JV
- RG31 production at one a day
- SAMPSON achieves major milestones
- Lyme Bay delivered 9 weeks early
- HMS Daring departs on sea trials
- Fourth Astute under way
- Harrier rear fuselage completed
CONTRACT AWARDS THIS MONTH
- SBX-1 contract
- ROH contract on MSC oiler
- Laser upgrade for US Army helicopters
- Mine Roller Systems
- Virtual Bradley combat systems vehicle
- M113 Vehicle reset contract
- OTHR radar support services contract
- Nulka Program
- Final T-45C Goshawks contract
GENERAL NEWS
NATO honour awarded to Insyte employee
In June, Insyte C4I Training Manager, Mick Audus was presented with a North Atlantic Treaty Organisation (NATO) Meritorious Service Medal for work carried out in support of the Joint Warfare Centre (JWC) in Norway. The medal is a high accolade, as its dispensation is approved by the Secretary General of NATO.
F-22 Collier Trophy Award
Electronics & Integrated Solutions (E&IS) is among members of the F-22 Raptor industry team that received the National Aeronautic Association’s 2006 Robert J. Collier Trophy, recognizing aeronautical and space innovation.
E&IS provides the F-22’s electronic warfare suite; communication, navigation, and identification low-observable apertures; multi-spectral countermeasures; and stores management system.
Best supplier recognition, Gold Award for E&IS
The Defense Supply Center recognized Electronics & Integrated Solutions (E&IS) as one of the US government’s best suppliers for meeting stringent Defense Department requirements.
E&IS’ facility at Lansdale, Pa., received a Best Value Gold Medal from the U.S. Defense Logistics Agency for providing spare parts to the Defense Supply Center in Richmond, Va., with 100 percent on-time delivery and product quality during 2006.
Land Systems Munitions hosts UK General
Land Systems Munitions at Glascoed and Radway Green in the UK recently hosted a visit from the Head of Defence Equipment & Support (DE&S), General Sir Kevin O’Donoghue KCB CBE.
The General, accompanied by Lieutenant General Dick Applegate, Chief of Material (Land) and other senior UK MoD officials, came to see the effort being made to increase the quantities of ammunition supplied from Glascoed and Radway Green to the UK MoD. General Sir Kevin O’Donoghue thanked the workforce for all their hard work in supporting the front line troops.
Leading defence chiefs visit BAE Systems
Defence chiefs and top aerospace executives from around the globe met in the North West of England in July and visited Military Air Solutions’ Samlesbury site, as BAE Systems hosted the F-35 Lightning II CEO Conference. The conference is the first to be held outside the United States.
It enabled top aerospace personnel from the nine countries involved in the production of the F-35 Lightning II to assess current progress and plan for the future development and sustainment phases of the programme. Many delegates also took the opportunity to participate in tours of Samlesbury to see BAE Systems’ F-35 production areas.
Acquisition of Information Science Consultants Ltd (iSC)
IFS Defence Ltd, a strategic joint venture between BAE Systems and IFS AB of Sweden, has recently completed the acquisition of Information Science Consultants Ltd (iSC).
iSC delivers software and services with a focus on the naval sector, providing Reliability-Centred Maintenance (RCM) based solutions for the UK Royal Navy, including the key onboard and onshore Unit Maintenance Management System (UMMS).
MAJOR PROGRAMMES UPDATES
Green light for Carrier and Warship JV
Following the UK Government’s announcement regarding the Heads of Terms agreement for the Future Aircraft Carrier (CVF) manufacturing phase contract, BAE Systems has entered into a legally binding Framework Agreement with VT Group to establish a Joint Venture (JV), which will be the UK’s premier provider of surface warships and through-life support.
This JV will incorporate all of Surface Fleet Solutions. BAE Systems, VT Group and the UK Ministry of Defence have also signed a non legally binding Heads of Terms for a Terms of Business Agreement (ToBA) which sets out a 15 year partnering arrangement to facilitate transformation of the sector through a defined forward workload.
RG31 production at one a day
Land Systems OMC facility in Benoni, South Africa is producing one RG31 per day for the US contract and is stepping this up to two vehicles per day.
SAMPSON achieves major milestones
SAMPSON has achieved two major milestones within one week with the successful conclusion of the Post Installation Acceptance Testing (PIAT) of both the Sea Trials Platform (STP) and Maritime Integration and Support Centre (MISC) radars and ownership having now been transferred to UKAMS and Surface Fleet Solutions (SFS) respectively.
The STP radar will now continue integration activities in preparation for UK sea tracking trials later this month, and the MISC radar will support SFS air picture compilation activities with the LRR (Long Range Radar), and progress towards aircraft trials in September.
Lyme Bay delivered 9 weeks early
Surface Fleet Solutions delivered the fourth and final ship in the Royal Fleet Auxiliary’s new class of landing ship, RFA Lyme Bay, to the UK Ministry of Defence more than two months ahead of schedule. The vessel recently completed stage one contractor sea trials off the coast of Scotland and was delivered to Falmouth to join her sister ships before undergoing further tests prior to the official handover ceremony in Portland on 2 August.
HMS Daring departs on sea trials
The most advanced warship in the world to date, HMS Daring, departed from Scotstoun this month on her maiden voyage to begin sea trials off the west coast of Scotland – bang on schedule.
Fourth Astute under way
Construction work on the fourth Astute class submarine Audacious is under way at Submarine Solutions’ Barrow site. This includes manufacture of the domes that will form the fore and aft sections of the submarine’s pressure hull. It is the first time that submarine domes have been produced at the Barrow shipyard – the business has taken on this work following the withdrawal of its traditional supplier. A special press has been installed and commissioned and new processes adopted; initial results are encouraging. Such dome manufacture is a unique capability outside the US and Submarine Solutions has also won a contract to manufacture submarine domes for Spain.
Harrier rear fuselage completed
The Harrier team has completed the seventh and final Harrier GR9 replacement rear fuselage, designed and manufactured as part of a three year £20 million programme for the UK MoD. The contract, part of the ongoing commitment to provide through-life support, involved the manufacture of un-equipped rear fuselages, designed to be retrospectively fitted to existing airframes to enhance the operational life of the aircraft. Close liaison between teams at Brough, Warton, Samlesbury and Farnborough has been crucial in the successful delivery of this contract.
CONTRACT AWARDS THIS MONTH
SBX-1 contract
BAE Systems Hawaii Shipyards has been awarded a contract to work on the Sea-Based X-Band Radar (SBX-1), a floating, self-propelled, mobile missile warning radar station, which is part of the Missile Defence Agency’s US Missile Defence System. The initial value of the contract is US$5.5 million and could exceed US$10 million if all options are exercised.
Designed to operate in high winds and heavy seas, the golf ball-shaped radar is mounted on a semi-submersible twin-hulled oil drilling platform. It can roam over the Pacific Ocean to detect incoming ballistic missiles and has the capability to identify baseball-size objects from thousands of miles away.
ROH contract on MSC oiler
BAE Systems Norfolk Ship Repair has been awarded a firm-fixed-price contract for the regular overhaul and drydocking of the Military Sealift Command (MSC) fleet replenishment oiler USNS Kanawha, a HENRY J. KAISER class underway replenishment oiler that provides fuel to Navy combat ships and jet fuel for aircraft aboard carriers at sea. This government owned and operated vessel is over 677 feet long, has a crew of 81 civilians and 23 military members.
The USNS Kanawha is the third Military Sealift Fleet Support Command contract the company has won since May and has an initial value of US$5.9 million, with the potential to reach over US$7.1 million if all options are exercised.
Laser upgrade for US Army helicopters
Electronics & Integrated Solutions (E&IS) received two U.S. Army contracts totaling US$54 million to provide a multi-band laser technology upgrade for the Advanced Threat Infrared Countermeasures/Common Missile Warning System (ATIRCM/CMWS) program. The multi-band laser replaces an existing infrared jam laser and flash lamp subsystem to protect helicopters by defeating infrared-seeking missiles.
Mine Roller Systems
BAE Systems was awarded a US$3.4 million contract modification from the U.S. Marine Corps Systems Command to provide 45 Mine Roller Systems, modification kits and spares for the US Marine Corps. The Mine Roller System is a high speed, vehicle-mounted mine roller featuring pressure-activated detonation. This delivery order, when combined with a previous contract award brings the total amount awarded for Mine Roller Systems to US$14.1 million.
Virtual Bradley combat systems vehicle
BAE Systems and CPU Technology, Inc.® (CPU Tech) announced that they have been funded by the US Army TACOM Life Cycle Management Command for a collaborative effort to begin the development of a SystemLab™ based virtual model of BAE Systems’ Bradley combat systems vehicle.
The virtual model will run on CPU Tech’s new SystemLab platform simulator and execute actual Bradley software at real time speeds. When completed, the virtual model will enable engineering teams networked together to have complete visibility inside the electronics of the entire vehicle during actual real time software execution.
M113 Vehicle reset contract
BAE Systems was awarded an US$18.77 million delivery order from the U.S. Army TACOM Life Cycle Management Command to reset up to 300 M113 Family of Vehicles (FOV) for the US Army. Work on this delivery order will be performed at BAE Systems’ Anniston, Alabama facility.
The work is primarily an inspection and repair process in which the input vehicles are brought to combat ready condition. In addition, the vehicles will receive add-on armor and nuclear, biological and chemical provisions.
OTHR radar support services contract
BAE Systems has been awarded a AUS$118m contract by the Australian Defence Force for a further five years (with an option for an additional 5+5 years) of development and support to the Jindalee Facility Alice Springs (JFAS), Over The Horizon Radar (OTHR) System.
In recent years, BAE Systems has led major upgrades of the JFAS transmitter and receiver hardware and software. The Company has also integrated algorithm and processing enhancements into radar control and signal processing systems. BAE Systems will lead future upgrades to key technology components in the coming years.
Nulka Program
The USS Gonzalez (DDG66) is the 100th ship to be fitted with the Nulka Active Missile Decoy System. BAE Systems Australia has produced over 700 Nulka decoys for the Royal Australian Navy (RAN), United States Navy (USN) and Canadian Navy. The program achieves regular sales of AUS$40-$50m per year making Nulka BAE Systems Australia’s most successful regular defence export, currently accumulating more than AUS$700m worth of work.
In addition, BAE Systems Australia has just been awarded a further AUS$50million contract to deliver Nulka Rounds to the Navies of Australia, Canada and the USA. This is the ninth such follow on annual order.
Final T-45C Goshawks contract
The contract for the last batch of the 221 T-45 Goshawks currently required for the US Navy has just been received by MAS from the prime contractor, Boeing. The contract, worth nearly £54m will see Training Solutions deliver ten T-45 fuselages from Samlesbury, and ten sets of wings, air intakes and fins from Brough into the final assembly facility in St Louis, Missouri. In addition we have also received a contract worth £0.5m for the continuation of the Integrated Logistics Support service provided to Boeing by Training Solutions.
