BAE Systems Investor Brief - November 2007
07 Dec 2007
In This Month’s Brief:
- DoD top 5 award
- ATTAC announced as ‘Project of the Year’
- Project award
- Opening of new Tennessee body armour facility
MAJOR PROGRAMMES UPDATE
- Agreement for modernization of U.S. Army heavy combat vehicles
- Indian Hawks head home
- Nimrod fitted with Stability Augmentation System (SAS)
- Typhoon test aircraft IPA6 makes its maiden flight
- Final Tranche 1 Eurofighter rolls out of the hangar
- Astute’s first dive
CONTRACT AWARDS THIS MONTH
- RG32 - Slovakia
- Telecommunications facilities contract
- Army vehicles to get L-ROD™ armour
- Vertical launching system contract for destroyers
GENERAL NEWS
DoD top 5 award
BAE Systems has been selected as a 2007 Top 5 Department of Defence (DoD) Program Award
winner for systems engineering for the company’s work on the surface ship MK57 Vertical
Launching System (VLS).
The MK57 VLS program is an example of our application of cost-effective systems engineering practices that result in high-performance combat systems that ensure our forces are successful in battle. The primary selection criteria was to demonstrate successful implementation of systems engineering best practices resulting in program success. BAE Systems and Raytheon are codeveloping the MK57 VLS.
ATTAC announced as ‘Project of the Year’
ATTAC (the Availability Transformation Tornado Aircraft Contract) was announced as ‘UK Project
of the Year’ at the 2007 Association for Project Management (APM) awards dinner on 30
October. ATTAC beat stiff competition across a wide range of UK Projects to win this prestigious
award.
Project award
Astute Programme Director Stuart Godden, has gained international recognition for the
programme, business unit and BAE Systems by reaching the finals of the prestigious Association
for Project Management Awards held to recognise excellence worldwide.
Stuart was runner-up in the Project Manager of the Year category, which spotlights individuals
who best demonstrate their project management ability in the delivery of a project during 2006/7.
Opening of new Tennessee body armour facility
BAE Systems has opened a 33,000 square-foot facility in Grainger County, Tennessee to
accommodate production, integration and assembly of the Improved Outer Tactical Vest (IOTV),
a new generation of protective gear for the U.S. Army.
The IOTV provides increased protection from bullets and fragments to soldiers and meets the
goals of providing troops with the most advanced protective gear available while also improving
comfort and mission effectiveness. BAE Systems has been awarded a US$112 million contract
for IOTVs and approximately 400 vests per day are to be produced at the Grainger facility.
MAJOR PROGRAMMES UPDATE
Agreement for modernization of U.S. Army heavy combat vehicles
BAE Systems and General Dynamics Land Systems, have signed a memorandum of agreement
to work collaboratively in support of the U. S. Army’s Heavy Brigade Combat Team
modernization plan.
The plan will upgrade, modernize and achieve commonality on BAE Systems’ family of Bradley
fighting vehicles and General Dynamics’ M1 Abrams tanks, the primary combat vehicles of the
Army’s Heavy Brigades.
The agreement, developed with the Army’s encouragement, defines how both companies will
work to jointly translate warfighter requirements into capabilities through collaborative design and
development of common solutions. The agreement also establishes the basic process for
collaborative specification and product development and provisions for the common procurement
of material to support system evolution on both companies’ combat vehicles.
Indian Hawks head home
The first two Hawk advanced jet trainers destined to train the next generation of Indian Air Force
(IAF) fast jet pilots have departed from BAE Systems Warton, UK, to their new home at Air Force
Station Bidar in India.
The two jets are the first of 66 Hawk aircraft to be delivered to the IAF as of part of a total training
package required to meet their fast jet pilot training needs. The programme includes 24 aircraft
being built in the UK by BAE Systems and 42 aircraft being manufactured under licence in India
by Bangalore's Hindustan Aeronautics Limited (HAL).
Nimrod fitted with Stability Augmentation System (SAS)
The first flight of the Nimrod MRA4 development aircraft PA01 fitted with the Stability
Augmentation System (SAS) took place from Woodford on 11 October 2007 and successfully
demonstrated the system.
The system, jointly developed by BAE Systems teams at Warton, Prestwick, Farnborough,
Woodford and Rochester, was conceived to enhance the stability of the MRA4 and the first flight
marks a significant milestone. The aircraft flew on a date set six months previously with a
qualified safety critical system developed in a record 14 months. In the first weeks of testing, the
aircraft achieved a remarkable 14 flights in 15 working days.
Typhoon test aircraft IPA6 makes its maiden flight
The latest Typhoon test aircraft IPA6 made its maiden flight on 1 November 2007 at BAE
Systems Warton. IPA6 will fly over the coming months to prove the Tranche 2 system design,
which features enhanced main mission computers and upgraded equipment to equip Typhoon
with the capacity to deliver future air-to-ground and advanced air-to-air capability.
IPA6 was airborne for 54 minutes which marks a significant milestone in the programme and the
beginning of the next chapter in the delivery of the full swing role capability.
Final Tranche 1 Eurofighter rolls out of the hangar
October saw the last Typhoon single seat Tranche 1 standard aircraft (BS036) roll out of final
production at BAE Systems' Warton site, marking the end of the Tranche 1 Eurofighter
production contract in the UK.
The completion of BS036 marks an important milestone for the programme and is a great
achievement for everyone involved. Of the 53 Tranche 1 aircraft ordered by the RAF, 48 aircraft
have now been delivered and already the aircraft is exceeding all their expectations in terms of
serviceability and capability.
Astute’s first dive
The Royal Navy’s newest and most advanced submarine Astute has taken its first dive – and
come back up with all its critical systems proven and all planned trials successfully achieved.
A series of dives over two days in Barrow’s Devonshire Dock proved the first of class boat’s
centre of gravity and stability under and above water, and proved all the critical systems for the
submarine’s safe operation underwater. The trim and basin dive programme was 100 per cent
achieved, thanks to a big team effort involving the Ministry of Defence and ship’s crew.
Very few defects were identified and the status of the submarine has been highly commended by
its Commanding Officer. Astute has now gone back into Devonshire Dock Hall (DDH)
construction facility for a number of work packages.
CONTRACT AWARDS THIS MONTH
RG32 - Slovakia
On 18 October 2007 the Slovak MoD confirmed that the RG32 has been selected as the vehicle
to be purchased for the MOKYS MKVRS (long range HF) requirement. Contract negotiations are
ongoing between SKMOD and the in-country prime contractor Delta B. It is expected that the
framework contract for seven RG32's will be concluded soon. This is a significant win and could
lead to further opportunities for the sale of RG31 and 32 in Slovakia and the region.
Telecommunications facilities contract
Technology Solutions & Services (TSS) has won a US$25.8 million, four-year recompete contract
to provide technical support for the operation and maintenance of the Naval Computer and
Telecommunications Area Master Station, Pacific (NCTMAS PAC) facilities. These facilities
operate on various communications sites throughout Hawaii.
TSS has provided continuous technical support for the NCTAMS PAC contract since October
2002. This win allows TSS to continue its partnership with NCTAMS PAC and the
communications community, and to assist in providing valuable multiple telecommunications
services in support of PACCOM commands.
Army vehicles to get L-ROD™ armour
E&IS will provide lightweight bar-armour kits for 215 U.S. Army route clearance vehicles.
The contract requires equipping the Army’s RG31 and Cougar vehicles with L-ROD™ aluminium
armour to protect vehicles and occupants against rocket-propelled grenades (RPGs).
L-ROD is a modular system made of lightweight aluminium alloy that protects vehicles without
adding significant additional weight or compromising their operational capabilities.
Vertical launching system contract for destroyers
BAE Systems has been awarded an US$8 million contract – which has the potential to increase
up to US$64 million – from Raytheon Company for the first two shipsets of MK57 Vertical
Launching System (VLS) for the U.S. Navy's DDG 1000 Zumwalt class of destroyers.
The contract covers the continuation of design, integration, requirements verification, and the
initial purchase of materials for the first two shipsets. Work on this contract award begins
immediately and continues until January 2012.
