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US Army’s Soldier Radio Waveform demonstrated on Raytheon’s next generation air and ground radios — Press Release

Multiple waveforms run on Raytheon tactical radios

MARLBOROUGH, Mass., Oct. 31, 2012 /PRNewswire/ — In a key milestone, Raytheon Company (NYSE: RTN) has demonstrated the Soldier Radio Waveform (SRW) on its new class of airborne and ground radio terminals, providing soldiers with another way to communicate across disparate networks.

During the demonstration, users were able to send voice and data traffic between Raytheon’s terminal and another soldier radio running SRW. Raytheon is moving through the Department of Defense’s Joint Tactical Networking Center’s (JTNC) certification process for waveform conformance, and the company plans to be at upcoming interoperability tests with the government.

In addition to SRW, Raytheon’s tactical radios already have the Next Generation Mobile Ad Hoc Networking Waveform (NMW), specifically designed to run on lower cost, reduced size and lower power-consumption radios, while delivering much-needed wideband networking capability.

Raytheon’s airborne radios are integrated on helicopters and unmanned aircraft. The ground radio system is called MAINGATE, or Mobile Ad Hoc Interoperability Network Gateway. It is targeted for the U.S. Army’s mid-tier network, for which it is under evaluation at this year’s Network Integration Evaluation (NIE) at Fort Bliss, Texas. MAINGATE, with NMW, has been in operational use with deployed forces for more than two years.

“The SRW demonstration was a key milestone and positions Raytheon to leverage its common radio architecture in our next generation ground and airborne radios,” said Scott Whatmough vice president of Integrated Communication Systems in Raytheon’s Network Centric Systems business. “The demonstration underscores Raytheon’s commitment to advanced multi-waveform Software Defined Radios, providing interoperability to the warfighter.”

The latest radios are capable of running narrowband and networking waveforms as well as the future Mobile User Objective System (MUOS) waveform from the JTNC library. Raytheon recently provided its NMW into this same repository to facilitate interoperability with MAINGATE.

About Raytheon

Raytheon Company, with 2011 sales of $25 billion and 71,000 employees worldwide, is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 90 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. Raytheon is headquartered in Waltham, Mass. For more about Raytheon, visit us at www.raytheon.com and follow us on Twitter @raytheon.

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New Wave of Global Threats – November 2012

In this podcast, we explore the top five threats to national security in the coming decade.

Lockheed Receives Order for 2 More SBIRS Satellites

The Space Based Infrared System (SBIRS) is the new missile warning satellite constellation being placed into orbit by the U.S. Air Force. It will consist of 2 different systems. One of these will be in high orbits and the others in geosynchronous orbits. Lockheed Martin (LMT) is a major contractor with the program.

The Air Force recently awarded a contract to Lockheed for the next 2 geosynchronous satellites – GEO 5 and 6. The initial value of the contract is a little over $80 million. This will fund further non-recurring effort on the 2 satellites as well as begin some long lead procurement.

GEO-1 satellite was launched last spring and is in orbit conducting tests. GEO-2, 3 & 4 are in production with the launch date of GEO-2 set for March of next year.

Over the next several years the rest of the systems will be built and placed into orbit replacing older Cold War era systems.

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Airbus Selects ATK to Manufacture Composite Wing Cover Stringers for the A400M Military Transport Aircraft — Press Release

Agreement in Excess of $100 Million Demonstrates ATK’s Position as World-Class Supplier in Manufacturing Composites

ARLINGTON, Va., Oct. 29, 2012 /PRNewswire/ — ATK (NYSE: ATK) announced today that Airbus Military has selected ATK for a contract in excess of $100 million to produce composite wing cover stringers for use on the A400M Military Transport Aircraft. The A400M is a new generation, four-engine turboprop military transport aircraft designed by Airbus Military, with its first aircraft delivery planned for the second trimester in 2013. This aircraft is already in full production and Airbus has selected ATK, a demonstrated expert in composite manufacturing, for this specific work package.

The A400M work package will be produced in the Aircraft Commercial Center of Excellence (ACCE) facility used for commercial aircraft and engine programs in Clearfield, Utah. The A400M work will use many of the same manufacturing processes already deployed within the ACCE facility.

“ATK is excited to continue expanding the scope of our relationship with Airbus,” said Joy de Lisser, vice president and general manager of ATK’s Aerospace Structures Division. “This scope complements the success we’ve already created with Airbus and demonstrates their confidence in our people and processes.”

The contract between ATK and Airbus includes 122 wing cover stringers per aircraft for 180 aircraft. Airbus has already achieved sales for 174 aircraft. ATK may have the opportunity to grow as more A400M aircraft are sold.

ATK is an aerospace, defense, and commercial products company with operations in 21 states, Puerto Rico, and internationally. News and information can be found on the Internet at www.atk.com.

Airbus Military is a subsidiary of Airbus, an EADS Company, a leading aircraft manufacturer with the most modern and comprehensive product line. News and information can be found on the internet at www.airbus.com and www.airbusmilitary.com.

Certain information discussed in this press release constitutes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Although ATK believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those factors are: future levels of business in the aerospace and commercial transport industries or in the number of aircraft to be built; the success and timely progression of our customers’ new programs; the success and timely execution of key certification and delivery milestones; the company’s competitive environment; and economic conditions. ATK undertakes no obligation to update any forward-looking statements. For further information on factors that could impact ATK, and statements contained herein, please refer to ATK’s most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with the U.S. Securities and Exchange Commission.

Photo via PR Newswire.

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Defense Industrials Continue 2012 Trends, Preparing For Rocky 2013 — Seeking Alpha

Here is a post I wrote for Seeking Alpha about the latest quarterly earnings of the 5 big defense contractors.

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Inmarsat Helps NGOs to Control Satellite Communications Costs with New Humanitarian Aid Packages — Press Release

October 29, 2012 by · Comment
Filed under: Business Line, Companies, Events, IT, logistics, Press Releases 
  • New IsatPhone Pro package for humanitarian aid sector includes 3,000 minutes per month, across 3 SIMs, for one low monthly charge
  • Recently launched BGAN Link broadband service offers NGOs working on longer-term field projects a choice of high-volume data packages for a fixed monthly price

AidEx 2012, Brussels – 29 October 2012 – Inmarsat (LSE:ISAT.L), the leading provider of global mobile satellite communications services, has launched a new IsatPhone Pro humanitarian aid package that provides NGOs with a total of 3,000 minutes per month, shared between three SIMs, for one predictable, low monthly charge.

The new IsatPhone Pro bundle gives NGOs the flexibility to pool minutes across three different SIMs to make calls to other IsatPhone Pro handsets and landlines. NGOs will benefit from a dependable voice service while keeping a tighter control of their field-based satellite communications costs.

Inmarsat’s commitment to providing a dependable, affordable communications service to the Humanitarian Aid sector also extends to its latest broadband service BGAN Link. Launched earlier this year, it allows NGOs working on location for sustained periods of time to take advantage of a high-volume usage broadband service for a fixed monthly price and is currently available in 5, 10 or 15GB packages.

Commenting on the ubiquity of Inmarsat services, Jean François Cazenave, President at Inmarsat-sponsored emergency communications agency Télécoms Sans Frontières (TSF), said: “We continue to rely on Inmarsat’s satellite communications to support relief efforts all over the world. The reliability, affordability and dependability of Inmarsat’s BGAN and IsatPhone Pro services, even in remote areas, allow us to provide vital communications links for as long as is necessary in the aftermath of natural disasters, where telecoms infrastructure has been damaged by earthquakes or floods, as well as in conflict zones. In Mali and its neighbouring countries, in North Niger and North Burkina Faso for example, we are deploying BGAN to help the UNHCR carry out its assessment mission and are using both the BGAN and IsatPhone Pro services to help Malian refugees through the provision of reliable communications means for international NGOs and humanitarian workers supporting them.”

“As a leading global mobile satellite service provider to the Humanitarian Aid sector, we are continually looking for ways to further improve the services we provide to NGOs. We have listened carefully to NGOs who have been telling us that affordability and predictability of pricing, alongside our unrivalled Quality of Service, is extremely important to them. We have responded with this new voice bundle for our IsatPhone Pro service,” said Ronald Spithout, President of the Enterprise business unit at Inmarsat.

“Our IsatPhone Pro and BGAN Link packages for the Aid sector help NGOs to better control their satellite communication costs because they know exactly what they are spending every month. This will allow them to benefit from Inmarsat’s services every day, over an extended time period, not just in times of emergency or crisis,” he continued.

IsatPhone Pro is popular with humanitarian workers providing aid during rescue operations because it is a robust, easy to use handheld satellite phone that delivers reliable global coverage, clear voice quality and unrivalled battery life. Inmarsat recently announced that it had secured its 100,000th IsatPhone Pro order, a remarkable milestone achieved in the short time since the phone was introduced in June 2010.

The BGAN Link service allows access to typical office applications such as email, internet and intranet access, and VPN access to corporate networks, wherever their operations are based. If an organisation exceeds its monthly allowance, it is simply charged for the additional usage at the in-bundle per-MB rate, or can have a free upgrade to the next data package. NGOs that require total cost control for peace of mind can select an option that cumulatively monitors daily usage to ensure the monthly allowance is not exceeded. Either way, NGOs can now have complete predictability and control of their communications budget.

BGAN Link’s plug and play broadband is easy to set up, with no technical expertise needed. The service has low power requirements, low installation service and support costs and will remain connected in extreme weather conditions.

Both IsatPhone Pro and BGAN Link operate over Inmarsat’s award-winning I-4 network, offering around 99.9% satellite and ground network availability, giving assurance for voice and data connectivity wherever a NGO’s operation is located.

These services are available now through Inmarsat’s global partner network.

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Trying Again for the U.S. Air Force as Request for Proposals Released for New Rescue Helicopter

The U.S. Air Force has had its struggles over the last decades conducting competitions for new aircraft. The KC-X tanker program took 3 tries before Boeing (BA) ended up the winner with their modified 767 aircraft. Another program was a new Combat Search & Rescue (CSAR) helicopter to replacing aging MH-60 helicopters originally built by Sikorsky, part of United Technologies (UTX).

That program saw two attempts which ended up going nowhere due to protests and reviews. The last one in 2008 did see Boeing win the contest with a version of the CH-47 Chinook heavy lift helicopter but after the GAO upheld protests by the losers, Sikorsky and Augusta Westland, the Air Force decided not to pursue a 3rd attempt at that time.

Now reportedly a Request for Proposals for a new program, Combat Rescue Helicopter (CRH), was put out recently. This gives vendors 90 days to submit their proposals with source selection planned for most of next year and a contract award in late Fiscal Year 2013.

The program is for 112 aircraft and has a cost goal of under $6.8 billion.

Potential bidders will include Boeing, Sikorsky, Augusta Westland, and presumably EADS North America could participate with a Eurocopter aircraft.

Based on past history with recent Air Force acquisitions the service will have to do a very thorough and documented source selection process as a protest is very likely due to the upcoming budgetary situations and lack of new helicopter programs.

The FedBizOpps page for this procurement may be found here.

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LOCKHEED MARTIN RADAR, MILSATCOM PROGRAMS RECEIVE DoD AWARDS FOR SYSTEMS ENGINEERING EXCELLENCE — Press Release

SAN DIEGO, October 25, 2012 – Lockheed Martin [NYSE: LMT] has won two of five awards given annually by the Department of Defense and the National Defense Industrial Association (NDIA) for excellence in systems engineering. The awards, presented at the NDIA Systems Engineering Conference in San Diego, are assessed on 2011 performance and recognize effective implementation of systems engineering best practices to achieve program success.

Lockheed Martin Mission Systems and Sensors, Syracuse, NY, and Lockheed Martin Space Systems, Sunnyvale, Calif., each received the NDIA’s Top 5 DoD Program Award for 2012. The U.S. Army and U.S Air Force were co-recipients for each program respectively.

Lockheed Martin’s Mission Systems and Sensors business and the U.S. Army’s Project Manager, Night Vision/Reconnaissance, Surveillance, and Target Acquisition (PM NV/RSTA), were recognized for the AN/TPQ-53 (Q-53) Counterfire Target Acquisition Radar. The Q-53 radar system – formerly designated EQ-36 during its development – detects, classifies and tracks mortars, rockets and artillery as well as locating their source, in either 360- or 90-degree modes, to provide soldiers with enhanced protection. In response to urgent combat needs, the Army began deploying this system to Iraq and Afghanistan in fall of 2010. To date, Lockheed Martin has delivered 29 of the 65 Q-53 radars ordered by the Army.

“The first Q-53 radar system was in combat providing enhanced protection for our soldiers just 45 months after we won the Army’s competitive development contract – that’s a real testament to our employees’ dedication and our Systems Engineering know how,” said Lee Flake, Lockheed Martin’s program director for counterfire target acquisition radar systems. “Systems engineering is a core competency of our company and we are proud to be recognized for our commitment to excellence.”

Lockheed Martin Space Systems and the Military Satellite Communications Systems Directorate at the U.S. Air Force Space and Missile Systems Center, Los Angeles Air Force Base, Calif., won for the Advanced Extremely High Frequency (AEHF) program. AEHF provides vastly improved global, survivable, highly secure, protected communications for tactical warfighters operating on ground, sea and air platforms. In addition to its tactical mission, AEHF provides the critical survivable, protected, and endurable communications links to national leaders including presidential conferencing in all levels of conflict.

After an innovative orbit-raising plan, the first AEHF satellite reached its orbit on Oct 24, 2011. The second satellite reached orbit on August 10, 2012. Lockheed Martin is currently under contract to deliver four AEHF satellites and the program has begun advanced procurement of long-lead components for the fifth and sixth AEHF satellites.

“Enabled by a first class engineering team, the first and second AEHF satellites are safely on orbit, performing exceptionally and delivering unprecedented new communications capabilities for our armed forces,” said Mark Calassa, Lockheed Martin’s vice president and AEHF program manager. “Systems engineering is at the heart of our advanced technology systems, and we are honored to be recognized for this prestigious award.”

Headquartered in Bethesda, Md., Lockheed Martin is a global security and aerospace company that employs about 120,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation’s net sales for 2011 were $46.5 billion.

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Northrop to Support HII Ship Construction

Last year Northrop Grumman (NOC) spun off its shipbuilding division into a new company, Huntington Ingalls Industries (HII). This meant that the company was no longer building ships for the U.S. Navy. HII assumed the yards owned by NOC in Louisiana and Mississippi and the current contracts.

That does not mean that Northrop no longer is part of the military shipbuilding program though. It was just recently awarded a contract to provide a component for a new amphibious warship under construction by HII. The approximately $50 million contract will provide the Machinery Control System (MCS) to HII for installation on the new ship.

The Navy is building a new class of LHA ships to supplement existing LHA’s of the Tarawa class and the LHD ships of the Wasp class. These new LHA will combine features of both previous class ships and carry helicopters, V-22 tiltrotors and landing craft. They will be able to support Marine units and transport them to shore. The new LHA-6 America class ships also have the capability to support the F-35 Joint Strike Fighter providing a measure of ground attack and air defense capability.

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ITT Exelis Wins NVG Contract

ITT Exelis (XLS) is the old defense part of ITT Corporation (ITT) that split into 3 parts last year. ITT Corporation is the heir to ITT Industries which was a conglomerate of different businesses including several defense product lines including night Vision equipment, radars, electronic warfare systems as well as engineering and technical support. The defense part along with its water and pump lines were set up as separate companies just over a year ago.

ITT Exelis has continued to compete in their core defense markets and was just recently awarded another contract by the U.S. Army for Night Vision Goggles (NVG). This new Indefinite Delivery / Indefinite Quantity (ID/IQ) contract for Generation 3 systems could be worth over $200 million. Under the ID/IQ structure the Army will order different tasks of what they need so in the end Exelis could see less then the total value of the contract.

The U.S. military has invested heavily in such equipment over the last forty years and has a significant advantage at night operations due to this. The googles are able to be used by aircrew as well as ground units to improve their capabilities in night operations. ITT and now Exelis is one of the leading producers of this equipment in the world.

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Boeing Posts Better-Than-Expected Profit and Raises Forecast for a 3rd Time

The aircraft maker increased deliveries of commercial and military airplanes, with the biggest revenue gains coming from the growing demand for new passenger planes.

Chesapeake PERL To Produce Nerve Agent Bioscavenger For DTRA — Press Release

C-PERL Will Produce Nerve Agent Bioscavenger Butyrylcholinesterase for Defense Threat Reduction Agency using Proprietary Protein Production System.

SAVAGE, Md., Oct. 24, 2012 /PRNewswire/ — Chesapeake PERL has been awarded a contract to develop the human nerve agent bioscavenger butyrylcholinesterase (BChE) as a potential nerve agent countermeasure for the Defense Threat Reduction Agency (DTRA). The contract will fund development of a recombinant human BChE and its production in C-PERL’s PERLXpress high efficiency protein manufacturing system. C-PERL will collaborate with the US Army Medical Research Institute of Chemical Defense (located on the Aberdeen Proving Grounds, MD) to test the circulatory stability and anti-nerve agent protective efficacy of the recombinant BChE, with the ultimate objective of advancing a product into human clinical trials.

BChE is the lead bioscavenger candidate based on its ability to afford protection over a broad range of highly toxic organophosphorus nerve agents. It is a natural mammalian blood protein that can be administered either prophylactically or post-exposure, but is normally present at low concentrations in human plasma making it both expensive to produce and severely limited in supply. DTRA is seeking economical alternative production methods utilizing recombinant technology, and has selected C-PERL for its experience in manufacturing high quality proteins using its highly automated, efficient and cost-effective PERLXpress production system.

Chesapeake PERL is a biological manufacturer specializing in the production of high quality proteins, including glycosylated and lipid-associated proteins, multimeric forms and self-assembling macromolecular structures. PERLXpress, the Company’s proprietary, highly automated in vivo implementation of the Baculovirus Expression Vector System, employs whole insect larvae as mini-bioreactors. The tissue heterogeneity of the insect bioreactors leads to very high levels of protein expression as well as protein modification and processing that closely resemble native versions of the same proteins, and the system flexibility enables rapid, precisely controlled production from micrograms to tens of grams of protein. www.c-perl.com.

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Integrity Announces Marc Klein as New Chief Financial Officer — Press Release

October 24, 2012 by · Comment
Filed under: Business Line, Companies, Events, Press Releases 

McLean, VA – Oct. 23, 2012 – Integrity Management Consulting, Inc. (Integrity), an award-winning provider of acquisition and program management solutions to public sector clients, announces it has named Marc Klein as Chief Financial Officer.

“We are thrilled to have Marc on board at this exciting time for Integrity,” said Christopher Romani, Chief Executive Officer. “With his government contracting experience in both small and large business environments as well as his proven track record in both financial and operational leadership, I am confident Marc is the right match for this key role in Integrity’s strategic growth plan.”

Klein brings 25 years of operational and financial leadership. Prior to joining Integrity, he was Operations Director for a $30 million, 100-person science and technology unit at Dynamics Research Corporation. Previously, he was Finance Director for High Performance Technologies, Inc. (HPTi), where he led financial planning and pricing which helped grow the business from $40 million to $100 million over five years.

“I’m really excited to join a company like Integrity which is focused on demonstrating value, and where people enjoy the work they do to support their clients,” said Klein. “My goal is to accelerate Integrity’s growth through winning strategies that focus on the whole – our customers, our employees and the bottom line.”

Now in its seventh year, Integrity has grown from two to almost 100 employees and now supports a wide range of federal agencies. It has been recognized with multiple awards for innovation, customer satisfaction, sustainability, corporate philanthropy and growth. Integrity was recently named to Inc. 500’s list of the fastest growing private companies in America for the third straight year and is among the top 10 nationally in government services. The Washington Business Journal, Washington Technology and Virginia’s “Fantastic 50” also recognized Integrity in 2012.

About Integrity

Integrity’s contract vehicles include multiple BPAs, a MOBIS schedule, and a Navy SeaPort-e IDIQ. Its flexible structure permits fast service and a rapid response nationally. Integrity is passionate about all of its commitments: helping the government serve the nation and its security, caring for employees, and improving the communities in which we work and live. Visit ConsultWithIntegrity.com.

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Option Executed for More C-130 Aircraft

October 24, 2012 by · Comment
Filed under: Editorial 

The U.S. Department of Defense executed a contract option with Lockheed Martin (LMT) for another batch of C-130J aircraft. The C-130J is the latest version of the venerable Hercules in use for fifty years with the U.S. military and many allied nations. The latest option is for the FY13 budget year.

The nearly $900 million contract will buy 13 new C-130 aircraft. This includes most versions of the transport including MC-130, HC-130, KC-130 and the normal C-130 transport version.

The U.S. air transport fleet has flown millions of hours and carried thousands of tons and passengers in support of the fighting in Iraq and Afghanistan. The C-130 are normally used for shorter missions often in theater to move cargo and people around.

The largest U.S. defense contractor also recently signed a deal with Iraq for 18 more F-16 fighters worth close to $3 billion. This is part of a deal to provide 36 of the light aircraft to modernize the new Iraq air force.

Photo from ngotoh’s Flickr photostream.

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UTC Reports Third Quarter EPS From Continuing Operations of $1.37; Affirms 2012 EPS Outlook of $5.25 to $5.35 and Increases Restructuring to $600 Million — Press Release

HARTFORD, Conn., Oct. 23, 2012 /PRNewswire/ — United Technologies Corp. (NYSE: UTX) today reported third quarter 2012 results. All results in this release reflect continuing operations unless otherwise noted.

Earnings per share of $1.37 and net income attributable to common shareowners of $1.2 billion were down 4 percent and 3 percent, respectively, over the year ago quarter. Results for the current quarter include $0.09 per share of restructuring costs, offset by $0.09 of favorable one-time items. Earnings per share in the year ago quarter included $0.06 of restructuring costs, partially offset by $0.04 per share of net favorable one-time items. Before these items, earnings per share decreased 6 percent year over year. The effective tax rate for the quarter was 26.6 percent. Foreign currency translation, and hedges at Pratt & Whitney Canada, had an adverse impact of $0.07.

The acquisition of Rolls-Royce’s share of the International Aero Engines joint venture closed on June 29 and provided $0.03 of EPS accretion in the quarter. Net of transaction and financing costs, the acquisition of Goodrich Corporation, which closed on July 26, did not have an impact on EPS.

“The integration of Goodrich and IAE is off to a good start with solid underlying performance at both businesses,” said Louis Chenevert, UTC Chairman & Chief Executive Officer. “We now expect just $0.10 of EPS dilution from the Goodrich acquisition in 2012 versus our prior estimate of $0.20.”

Sales for the quarter of $15.0 billion were 6 percent above prior year. Net acquisitions provided 11 points of growth. Organic sales decreased 2 percent over the year ago quarter and foreign currency translation also had an adverse impact of 3 points. Third quarter segment operating margin at 14.2 percent was 160 basis points lower than prior year. Adjusted for restructuring costs and net one-time items, segment operating margin at 15.0 percent was 100 basis points lower than prior year, including the impact from the Goodrich acquisition. Research and development costs increased $125 million in the quarter to $590 million, including $101 million at Goodrich. Cash flow from operations was $1.6 billion and, less capital expenditures of $317 million, exceeded net income attributable to common shareowners.

“We expect earnings per share of $5.25 to $5.35 for 2012. Faced with a challenging economic environment, we are increasing our investment in restructuring this year to $600 million, up from our prior plan of $500 million, and continue to expect net one-time gains of $600 million,” Chenevert added. “Strong cash flow is a hallmark of UTC, and we now expect free cash flow to exceed net income for the full year.”

New equipment orders at Otis were up 7 percent over the year ago third quarter, including unfavorable foreign exchange of 4 percentage points. North American Residential HVAC new equipment orders at UTC Climate, Controls & Security grew 3 percent. Commercial spares orders were up 14 percent at Pratt & Whitney’s large engine business including the impact from the incremental IAE share. Organically, commercial spares orders were down 21 percent at Pratt & Whitney and down 6 percent at UTC Aerospace Systems.

“Due to the lack of recovery in the commercial aerospace aftermarket and continued uncertainty in the global economy, we now expect 2012 sales of $58 billion,” Chenevert added. “The portfolio transformation is substantially complete, and we are focused on integration and execution.”

As previously announced, the company does not anticipate share repurchase in 2012 due to the Goodrich transaction. UTC expects a full year effective tax rate of 29 percent excluding one-time items, down from the prior estimate of 29.5 percent.

Earnings per share from discontinued operations were $0.19 in the quarter. Results included $127 million of positive income tax adjustments associated with the legacy Hamilton Sundstrand Industrials businesses.
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NAVISTAR DEFENSE HIGHLIGHTS THREE TACTICAL VEHICLES AT AUSA ANNUAL MEETING — Press Release

WASHINGTON, D.C. (October 22, 2012) Navistar Defense, LLC showcases three tactical vehicles this week at the Association of the United States Army (AUSA) Annual Meeting. The Special Operations Tactical Vehicle for the Ground Mobility Vehicle (GMV) 1.1 competition, the Indigen Armor Non-Standard Tactical Truck (NSTT) and the International® MaxxPro® Recovery Vehicle – Performance Kit (MRV-PK) demonstrate the latest in vehicle technology.

The Special Operations Tactical Vehicle and the NSTT are both designed to incorporate scalable armor packages to meet multiple threat levels encountered by special operators. The two vehicles share more than 60 percent vehicle commonality and are engineered to carry large payloads at off-road racing speeds in the roughest of mission terrain. Each vehicle can be integrated with a full government furnished Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) suite.

“The Special Operations Tactical Vehicle and the NSTT share similar vehicle capabilities to meet the rigors and unique requirements of special operators,” said Archie Massicotte, president, Navistar Defense. “We worked closely with Indigen Armor on the design of our Special Operations Tactical Vehicle and it is a solid vehicle entry for the Special Operations Command GMV 1.1 competition.”

The vehicle capabilities of the MRV-PK provide noticeably improved vehicle performance including an increase in horsepower and enhanced towing capability to support missions in Afghanistan. The kit can be retrofitted onto existing MaxxPro Recovery Vehicles and improves engine power by 20 percent to increase grade ability and acceleration. Mobility is improved through the addition of Navistar’s DXM™ front independent suspension along with an upgraded rear-wheel suspension. An auxiliary fuel tank increases range while a Central Tire Inflation System (CTIS) and six channel anti-lock braking system improves traction and performance in soft soil terrain.

“We saw a need in theater for additional capabilities and we have designed a retrofit solution ready today for our recovery vehicles currently in service,” said Massicotte “Our current MaxxPro vehicles have been tasked with recovery missions requiring unprecedented mobility and towing capabilities and our performance kit is a cost-conscious solution that anticipates future mission needs. This offering also comes on the heels of our recent MaxxPro survivability upgrade, which we can also make available for the MaxxPro Recovery Vehicle.”

About Navistar

Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International® brand commercial and military trucks, MaxxForce® brand diesel engines, IC Bus™ brand school and commercial buses and Navistar RV brands of recreational vehicles. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine service parts. Another affiliate offers financing services. Additional information is available at www.Navistar.com/newsroom.

About Indigen Armor

Indigen Armor was conceived by special operations personnel while serving in a volatile combat zone in 2004. Acquired by J.F. Lehman & Company private equity firm in 2009, the company continues to be run by military veterans with extensive Special Operations backgrounds that focus on the design and development of Specops mobility platforms. The company has a growing staff of professionals housed in a 267,000 square foot, state-of-the-art prototyping and manufacturing facility. For more information, visit www.indigenarmor.com.

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Raytheon acquires technology development firm Teligy, Inc. — Press Release

Extends critical cybersecurity offerings in wireless communications

GARLAND, Texas, Oct. 22, 2012 /PRNewswire/ — Raytheon Company (NYSE: RTN) has acquired Teligy, Inc., a technology development company, further extending Raytheon’s cybersecurity offerings in wireless communications, vulnerability analysis, reverse engineering and custom kernel software/device driver development. These critical focus areas represent top priorities of intelligence, defense and commercial organizations worldwide.

Terms of the transaction were not disclosed. The transaction will not materially impact Raytheon’s total company sales or earnings per share for the fourth quarter of 2012 or fiscal year 2013.

Teligy excels at transitioning prototype and proof of concept cyber products into deployable solutions. Coupled with Raytheon’s existing expertise, Teligy enables Raytheon to cover the entire communication stack for both wired and RF technologies across all relevant platforms, and provides access to emerging markets.

“The Teligy acquisition adds critical wireless capabilities that address the needs of our cybersecurity customers in the intelligence, DoD and federal communities,” said Lynn Dugle, president of Raytheon’s Intelligence and Information Systems business. “Teligy is comprised of highly skilled and proven performers with strong customer focus, and we are excited to welcome them as members of our team.”

Founded in 2002, Teligy, Inc., is headquartered in Greer, S.C. Co-founders Vic Gunter, vice president of Engineering, and Jason Yates, vice president of Development, will remain with the company.

“We are thrilled with this opportunity to join the Raytheon team,” said Yates. “This acquisition will enable Teligy to rapidly scale our capabilities and bring additional value to both Raytheon and Teligy customers.”

The acquisition of Teligy marks Raytheon’s 11th cyber-related acquisition since 2007. Raytheon continues to build upon its innovative, non-traditional approaches to cyber resiliency in the face of advanced persistent threats. Raytheon’s three decades of experience in cybersecurity provides customers with solutions to anticipate, withstand, recover and evolve from cyber attack and new threats as they emerge.

About Raytheon

Raytheon Company, with 2011 sales of $25 billion and 71,000 employees worldwide, is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 90 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. Raytheon is headquartered in Waltham, Mass. For more about Raytheon, visit us at www.raytheon.com and follow us on Twitter @raytheon.

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Oshkosh Defense Begins L-ATV Production for JLTV EMD Phase — Press Release

The Oshkosh Defense L-ATV provides optimal balance and enables unmatched off-road mobility while meeting stringent transportability and protection requirements.

OSHKOSH, Wis. (Oct. 22, 2012) — Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), has begun production of its Light Combat Tactical All-Terrain Vehicle (L-ATV). The L-ATV was selected for the Joint Light Tactical Vehicle (JLTV) Engineering, Manufacturing and Development (EMD) phase, and it will be exhibited at AUSA 2012, Oct. 22-24 in Washington, D.C.

“Oshkosh is building our JLTV offering on a flexible and integrated production line using proven lean manufacturing processes, a rigorous Oshkosh quality-assurance system and an efficient supply chain to deliver mature vehicles, ready for government testing,” said John Bryant, vice president and general manager of Joint and Marine Corps Programs for Oshkosh Defense. “We have also completed our start-of work meeting with the government, and we will stay in close touch throughout the program with ongoing meetings and reviews.”

The JLTV program aims to replace many of the U.S. military’s aging HMMWVs with a lightweight vehicle that offers an optimal balance to protection, performance and payload for the joint forces. Oshkosh’s JLTV provides that optimal balance and enables unmatched off-road mobility while meeting stringent transportability and protection requirements. The L-ATV can accept multiple armor configurations, allowing the vehicle to easily adapt to operational requirements. The L-ATV also applies the Oshkosh TAK-4i™ intelligent independent suspension system to provide significantly faster speeds when operating off-road, which can be critical to troops’ safety.

Because the JLTV production phase is years out and will only replace a portion of the existing HMMWV fleets, Oshkosh Defense is offering HMMWV modernization options that can improve the aging vehicles’ mobility and protection for Warfighters today and into the future. Oshkosh will display HMMWV upgrade capabilities at AUSA 2012 that provide the best mobility solutions for the investment. The company is “right sizing” its proprietary technologies to deliver affordable performance improvements through proven components, both for unarmored and armored HMMWVs.

These offerings are backed by Oshkosh’s Integrated Product Support services, which are designed to support military readiness, life-cycle management and fleet modernization. This includes training services, instruction manuals, maintenance and repairs, parts supply and fleet restoration services. Oshkosh Field Service Representatives (FSR) travel globally to ensure vehicles and personnel are at peak operational readiness. The company’s robust operator and maintenance training services provide systems-level expertise on the platforms and technologies they support, and Oshkosh’s parts-supply network is available 24/7 to provide instant access to spare and repair parts for all vehicle makes and models.

Oshkosh executives will be on hand to discuss the company’s vehicles, technologies and vehicle life-cycle management capabilities at booth #1713.

About Oshkosh Defense

Oshkosh Defense, a division of Oshkosh Corporation, is an industry-leading global designer and manufacturer of tactical military trucks and armored wheeled vehicles, delivering a full product line of conventional and hybrid vehicles, advanced armor options, proprietary suspensions and vehicles with payloads that can exceed 70 tons. Oshkosh Defense provides a global service and supply network including full life-cycle support and remanufacturing, and its vehicles are recognized the world over for superior performance, reliability and protection. For more information, visit www.oshkoshdefense.com.

About Oshkosh Corporation

Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Oshkosh Corporation manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Jerr-Dan®, Frontline™, CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide in businesses where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, visit www.oshkoshcorporation.com.

®, TM All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.

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General Dynamics Land Systems Features Medium Tracked Concept Vehicle at AUSA — Press Release

STERLING HEIGHTS, Mich. – General Dynamics Land Systems is featuring several of its forward-thinking solutions at the Association of the U.S. Army (AUSA) 2012 Annual Meeting & Exposition, including the Stryker+Tr medium tracked concept vehicle.

The Stryker+Tr offers the maximum survivability of the battle-tested Stryker double-V hull vehicle and significant commonality with the entire Stryker family of vehicles. Its power generation, transmission and suspension systems exceed current requirements for the Army’s Armored Multi-Purpose Vehicle (AMPV) program, and it delivers mobility and reliability characteristics similar to those of the Abrams main battle tank.

“We are constantly working on improving tactical effectiveness, reducing logistical burdens and decreasing the U.S. Army’s operational costs,” said Mike Cannon, General Dynamics Land Systems’ senior vice president, Ground Combat Systems. “Our solutions will help build leaner, more agile armored brigade combat teams.”

General Dynamics is also developing an Abrams tank with a modern, fuel-efficient diesel engine as another cost-saving innovation for the Army.

“Through the development of an Abrams diesel engine that is significantly more efficient than a turbine, we can reduce the cost per mile, increase the tactical range, lower maintenance costs and reduce the number of fuel and cargo trucks needed,” said Cannon.

General Dynamics will also showcase its Leader-Follower Technology at AUSA. This modular advanced technology turns manned ground vehicles into unmanned robotic systems. Leader-Follower Technology is designed to protect soldiers by removing them from dangerous re-supply convoys. It provides unit commanders greater tactical flexibility and allows more effective deployment of available personnel.

To learn more about these exciting new innovations, visit General Dynamics Land Systems at Booth #6029.

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Polaris Defense Survivability Solutions Headline AUSA Display — Press Release

Advanced armor and non-pneumatic tires address protection and mobility requirements

MINNEAPOLIS (Oct. 22, 2012) — Polaris Defense, a division of Polaris Industries Inc. (NYSE: PII), is showcasing two advanced vehicle technologies, designed to address the U.S. military’s need for increased vehicle survivability, at the AUSA 2012 Annual Meeting & Exposition. A lightweight, advanced armor solution and non-pneumatic tires (NPT) are on display in Polaris Defense booth #3913 through Wednesday at the Washington Convention Center, Washington, D.C.

“We take our role as a defense provider very seriously and as a result have identified two critical survivability challenges, invested in the development of effective countermeasures and are delivering them to the customer,” said Richard Haddad, Polaris Defense General Manager. “We can meet the military’s need for cost-effective, robust solutions by providing lightweight, advanced armor technology and non-pneumatic tires that will help increase the survivability and prolong the life of the U.S. Military’s expansive tactical wheeled vehicle fleet.”

Perfecting the Iron Triangle: Advanced Armor

Polaris Defense, partnered with M9 Defense, has developed a unique lightweight armor technology for the U.S. military. This is showcased as a concept demonstrator HMMWV at AUSA. While displayed on a light tactical vehicle, the armor is applicable to any tactical wheeled vehicle or combat vehicle platform. This new armor is produced with certified military materials using a proprietary ballistic resistant formulation and manufacturing process and it has the lowest pounds per square foot of any armor available in today’s market. The steel-hybrid composite armor, in conjunction with a high-speed production process, allows the Polaris/M9 team to form this cutting-edge armor into capsules and other ballistic vehicle components at speeds comparable to that of sheet metal processing, greatly reducing the overall cost.

“This armor redefines the iron triangle by restoring vehicle payloads, improving ballistic protection and upgrading vehicle performance and mobility,” said Haddad.

Reinventing the Wheel: Non-Pneumatic Tires

The acquisition of Resilient Technologies™ enables Polaris Defense to harness its non-pneumatic, never-flat tire technology towards increasing the survivability and handling of both currently fielded and future vehicles, either as a block upgrade or an integrated component. The NPT is composed of a central polymeric web surrounded by a rubber tread band which allows continuous operation, even if up to 30 percent of the web is damaged.

“We have tested our NPTs over 5,000 miles with a .50 caliber bullet hole and the performance exceeded expectations,” said Haddad. “This capability gives our troops an edge when operating in rugged terrain that destroys tires by eliminating the mission impact associated with flats.”

“Advanced armor and NPT technologies significantly broaden the capability of Polaris Defense platforms and leverage the company’s strength in product innovation and vehicle development,” said Haddad, “ensuring that Polaris Defense remains the leader in the ultra-light military vehicle market.”

About Polaris

Polaris is a recognized leader in the powersports industry with annual 2011 sales of $2.7 billion. Polaris designs, engineers, manufactures and markets innovative, high quality off-road vehicles (ORVs), including all-terrain vehicles (ATVs) and the Polaris RANGER® side-by-side vehicles, snowmobiles, motorcycles and on-road electric/hybrid powered vehicles.

Polaris is among the global sales leaders for both snowmobiles and off-road vehicles and has established a presence in the heavyweight cruiser and touring motorcycle market with the Victory and Indian motorcycle brands. Additionally, Polaris continues to invest in the global on-road small electric/hybrid vehicle industry with Global Electric Motorcars (GEM) and Goupil Industrie SA, and internally developed vehicles. Polaris enhances the riding experience with a complete line of Pure Polaris apparel, accessories and parts, available at Polaris dealerships.

Polaris Industries Inc. trades on the New York Stock Exchange under the symbol “PII,” and the Company is included in the S&P Mid-Cap 400 stock price index. Information about the complete line of Polaris products, apparel and vehicles accessories are available from authorized Polaris dealers or anytime at www.polaris.com.

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Oshkosh Defense Demonstrates TerraMax UGV Capabilities for Marine Corps Leadership — Press Release

Unmanned ground vehicle technology to be demonstrated at AUSA 2012

OSHKOSH, Wis. (Oct. 19, 2012) — Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), recently demonstrated its TerraMax™ unmanned ground vehicle (UGV) technology for Brig. Gen. Mark Wise, commanding general of the Marine Corps Warfighting Laboratory (MCWL), and others at an event in Pennsylvania. Representatives from MCWL, the Office of the Secretary of Defense, the Department of Transportation, the Robotic Systems Joint Project Office and other agencies were also in attendance.

Equipped on two Oshkosh Medium Tactical Vehicle Replacements (MTVR), the TerraMax UGVs conducted representative convoy operations, demonstrating obstacle avoidance and attaining speeds of 35 miles per hour. The event followed MCWL’s successful Enhanced MAGTF Operations (EMO) Limited Objective Experiment (LOE) 2.2, in which the TerraMax system and other technologies under development for future missions were evaluated with a focus on defining tactics, techniques and procedures (TTPs) to successfully employ unmanned ground systems and logistic demand reduction technologies.

“This demonstration offered government leaders and representatives an opportunity to experience firsthand the advanced level of sophistication and capabilities of our TerraMax UGV technology,” said John Beck, chief unmanned systems engineer for Oshkosh Corporation. “Two unmanned MTVRs – supervised by a single operator – executed multiple 30-minute missions on a rugged off-road course in very dusty conditions.”

The Oshkosh TerraMax UGV technology is designed as a scalable kit that can be tightly integrated on current production vehicles, including those built by other manufacturers, or retrofitted on legacy vehicles. Vehicles equipped with the TerraMax UGV technology are able to complete planned missions in full autonomous mode or by “shadowing” a leader vehicle. They can also maintain prescribed convoy following distance, function in all weather conditions and operating environments, retain their original payload and performance capabilities, and require minimal human interaction or operator training.

Through the Joint Ground Robotics Enterprise Robotics Technology Consortium, Oshkosh Defense and the National Robotics Engineering Center worked closely with MCWL and the Naval Surface Warfare Center Dahlgren Division to develop and integrate the TerraMax UGV technology for the Cargo UGV project.

Oshkosh is also transitioning technologies that enable the TerraMax UGV system to active-safety features applicable to manned operation of the military’s tactical wheeled vehicle fleets. Leveraging the mature components of the TerraMax UGV technology, Oshkosh is offering advanced automotive features such as electronic stability control, forward collision warning, adaptive cruise control, emergency braking assist, and electric power assist steering that can be fielded today to improve fuel economy and operator safety during missions.

Oshkosh will be demonstrating the TerraMax UGV technology at AUSA 2012 at booth #1713, and company executives will be on hand to discuss it.

About Oshkosh Defense

Oshkosh Defense, a division of Oshkosh Corporation, is an industry-leading global designer and manufacturer of tactical military trucks and armored wheeled vehicles, delivering a full product line of conventional and hybrid vehicles, advanced armor options, proprietary suspensions and vehicles with payloads that can exceed 70 tons. Oshkosh Defense provides a global service and supply network including full life-cycle support and remanufacturing, and its vehicles are recognized the world over for superior performance, reliability and protection. For more information, visit www.oshkoshdefense.com.

About Oshkosh Corporation

Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Oshkosh Corporation manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Jerr-Dan®, Frontline™, CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide in businesses where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, visit www.oshkoshcorporation.com.

®, TM All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.

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TRANSHIELD PROTECTIVE TECHNOLOGIES HELP SAVE MILLIONS IN MILITARY VEHICLE MAINTENANCE COSTS — Press Release

October 22, 2012 by · Comment
Filed under: Business Line, Companies, Events, logistics, Press Releases 

Patented Corrosion Inhibiting Process Can Add Years to Vehicle, Aircraft, and Equipment Life During Normal Use, Storage and Shipment

ELKHART, Ind. (Oct. 18, 2012) – Transhield, Inc., the leading manufacturer of protective covers to commercial and industrial markets, offers patented Vehicle Corrosion Inhibitor (VCI) technologies that can significantly reduce defense vehicle maintenance costs due to corrosion. In addition, for
vehicles, aircraft, weapon system components and equipment that require long-term storage between deployments, these technologies can add several years to their lifecycle.

“The expeditionary nature of our U.S. Armed Forces calls for the ability to deploy, stage and store vehicles, equipment and aircraft at locations with very harsh environmental conditions. Transhield has developed the most advanced solutions, which can easily pay for themselves
through an extension in the useful life of stored equipment and reduced maintenance. Anticorrosion protective covers have been a key component of the U.S. Marine Corps’ corrosion cost reduction strategy, which has resulted in millions of dollars worth of savings over the past several
years, and helped make the USMC the only service to report reduced costs due to corrosion,” said James Glick, Transhield’s president. “Our patented technologies provide effective, cost-saving protection for on-base storage and protection at key locations worldwide, helping keep our
Warfighters ready.”

Transhield offers the U.S. military three patented technologies that eliminate the corrosive greenhouse effect inherent to traditional vinyl and canvas tarps. They include:

• Transhield XT™ – This technology provides superb VCI effect, reduces corrosion by up to 90 percent, prevents water intrusion and reduces condensation underneath the cover. It features three layers of protection: a UV-resistant polyethylene film that provide more than 90% UV blockage, an adhesive with a patented VCI delivery process, and a polyester hydro-entangled nonwoven material.

• Armordillo™ – Designed in response to the U.S. Military’s need to effectively protect equipment in the harshest climatic conditions such as those encountered by the US Navy while at sea, this technology incorporates Transhield’s patented VCI adhesive layer with a more durable, waterproof outer layer and an inner layer that includes thin polyester fabric and energy-absorbing fibers. It also includes Biocide to reduce mold, mildew and fungus.

• VCI Shrinkable Fabric – This technology provides low cost, breathable and tight-fitting coverage suited to transcontinental shipping and multi-year storage situations where access to the equipment is not required. For example, VCI shrinkable fabric is well suited to protecting retired military aircraft that may be recalled into service or converted to drones at a future date.

All Transhield’s protective covers are tested using ASTM standards for breathability, ultraviolet blockage, tensile strength, and yield strength. They are lightweight, 100-percent waterproof and provide years of use.

Transhield has supplied more than 20,000 vehicle and equipment covers to the U.S. Military since 2008. The company was recently awarded a $4.5 million contract by the U.S. Marine Corps to provide 3,700 protective vehicle and equipment covers, primarily to protect the Marine Corps’
entire fleet of Mine Resistant Ambush Protected (MRAP) vehicles. Transhield protective covers are available on the GSA Federal Supply Schedule under contact number GS-02F-0103R.

Transhield will exhibit in Booth #4143 at the AUSA Annual Exposition, October 22 – 24.

About Transhield, Inc.

Transhield, Inc. is the leading manufacturer of a broad range of protective covers for use in the defense, aerospace, marine, rail and other industrial markets. Transhield products are valued worldwide for their high quality, patented corrosion reduction technology, and customized fit to help protect equipment investments. The company produces more than 120,000 covers annually and has been a supplier to the U.S. Military since 2001. Transhield is a small business headquartered in Elkhart, Ind., and has approximately 30 employees. For more information, visit www.transhield-usa.com. Also find Transhield on Facebook, Twitter and YouTube.

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Raytheon Continues Light Weight Torpedo Production

The U.S Navy exercised an option with Raytheon (RTN) for the production of Mk 54 Light Weight torpedoes. This is the standard surface vessel and air launched system used by the Navy and some allied nations. The option had a value of a little over $45 million.

It provides for one years production as well as test and engineering services for the system. The Mk 54 is carried by the SH-60, P-3 and cruisers, destroyers and frigates. It just recently completed testing from the new P-8 maritime patrol aircraft that will eventually replace the P-3.

The Mk 54 is also used by the Australian Navy and will be by the Indian as well as they will operate several P-8I aircraft.

The Mk 54 has been in production for 8 years and replaced the Cold War era Mk 50 and Mk 46 systems. It is fired from the traditional Mk 32 launch systems in use for decades, the ASROC rocket as well as from aircraft.

Until the full effects of sequestration are decided upon by Congress the Pentagon continues to exercise their planned FY13 budget under the existing 6 month Continuing Resolution Authority.

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SAIC Awarded $152 Million Task Order By U.S. Army Aviation and Missile Life Cycle Management Command (AMCOM) — Press Release

October 19, 2012 by · Comment
Filed under: Business Line, Companies, Events, IT, logistics, Press Releases, SAIC 

Company to Provide Information Technology Support Services to AMCOM and Tenants of Redstone Arsenal

MCLEAN, Va., Oct. 18, 2012 /PRNewswire/ — Science Applications International Corporation (SAIC) [NYSE: SAI] announced today it was awarded a task order by the U.S. Army Aviation and Missile Life Cycle Management Command (AMCOM) to provide information technology (IT) support services to AMCOM and tenants at Redstone Arsenal. The task order has a thirty seven month period of performance and a total contract value of approximately $152 million. The task order was awarded under the Information Technology Enterprise Solutions-2 contract vehicle. Work will be performed primarily in Huntsville, Ala.

AMCOM provides and sustains world-class aviation and missile systems to the joint warfighter, supporting national security and defense strategies today and in the future. Under the contract, SAIC will provide IT support services, including: enterprise design, integration, and consolidation; IT education and training; IT program and project management; systems operations and maintenance; network support; and embedded information systems security and information assurance. Work will include systems analysis, systems design, systems development, application/systems administration, programming, software development, IT operations, and configuration management and communications.

“We look forward to providing AMCOM with life-cycle information technology support services and efficient support process to ensure mission success,” said Glenn San Giacomo, SAIC senior vice president and business unit general manager.

About SAIC
SAIC is a FORTUNE 500® scientific, engineering, and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world, in national security, energy and the environment, critical infrastructure, and health. The Company’s approximately 40,000 employees serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. Government civil agencies and selected commercial markets. Headquartered in McLean, Va., SAIC had annual revenues of approximately $10.6 billion for its fiscal year ended January 31, 2012. For more information, visit http://www.saic.com/. SAIC: From Science to Solutions®

Statements in this announcement, other than historical data and information, constitute forward-looking statements that involve risks and uncertainties. A number of factors could cause our actual results, performance, achievements, or industry results to be very different from the results, performance, or achievements expressed or implied by such forward-looking statements. Some of these factors include, but are not limited to, the risk factors set forth in SAIC’s Annual Report on Form 10-K for the period ended January 31, 2012, and other such filings that SAIC makes with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.

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Boeing to Provide Logistics Support for CH-47

The U.S. Army has invested billions in rotary wing aviation over the last ten years. The UH-60, AH-64, CH-47 and OH-58D have flown millions of hours in support of fighting in Afghanistan and Iraq. At the same time they have developed and put into operation new versions of the aircraft such as the UH-60M and CH-47F. These aircraft have required intensive maintenance, support and modification due to the demands of the last decade.

Boeing (BA) as the manufacturer of the CH-47 also has benefited through these demands by providing logistic support to the aircraft. It recently received a contract for Performance Based Logistics (PBL) for the main rotor blades of the CH-47. The contract is for 5 years and worth almost $200 million. Rotor blades need to be repaired and rebuilt due to the harsh environments in Iraq and Afghanistan that often cause erosion and wear.

PBL is a current trend in U.S. military logistics support where the government is buying a level of support measured through metrics. This is supposed to be more efficient and cost effective as it minimizes buying too much support and reduces stockpiling of parts. Logistic contracts like this are a boon to the OEM for systems as they often for the first several years a system is in use get most of the support work. Depending on how much of the technical data owned by the Pentagon it may be they are the only ones who can do it and make billions over the life cycle of the system.

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