Defense Business Remains Interanational As Boeing Subs To MB Aerospace

September 16, 2009 by Matthew Potter · Comment
Filed under: Boeing, Business Line, Companies, Countries, MB Aerospace, Scotland, production program

The British company MB Aerospace announced that it had secured a further contract from Boeing to build launch systems for the Harpoon Surface-to-Surface anti-ship missile. This award is a four year extension of an original one year contract. This original contract was for about $10 million in work and the four year extension will add another $30 million.

This contract continues to illustrate the global integration of the defense business. This is especially true for the Western NATO allied countries. Because Harpoon is a system used not just by the U.S. but a variety of their allies and foriegn customers it makes sense to build parts for it in other nations. It may be a way to secure a better price or faster production or it may help sales to a foriegn customer. The overseas customers also provide necessary competition to U.S. sub-contractors.

Tags: 10 million, 30 million, aerospace, allied countries, allies, defense business, global integration, launch systems, MB Aerospace, missile, overseas customers

European Union Limits Offsets

July 2, 2009 by Matthew Potter · 1 Comment
Filed under: Business Line, Events, production program

Offsets are the practice of when one country buys a system or services from a company in another they require that company to invest in their economy. They are not uncommon in the defense business. Right now India especially has very strict offset rules that have led to some controversy.

The European Union announced yesterday some rules to make offsets more targeted and defense related among its member countries. In the past some country’s have requested offset investment in their civil economy rather then in defense work. Normal procedure is to buy services, parts or maintenance related to the contract awarded.

The new rules require that the offsets be defense related. They also limit the total value to no more then equivalent to the awarded contract. Most often offsets are some percentage of the value so these rules are not to onerous. The EU has moved recently to tighten up competition among the various countries penalizing Italy for favoring their own internal industry over other available sources for example.

The offset rules announced will probably have limited effect since many of the projects are already shared among a variety of suppliers such as the Typhoon. If there is a decline in defense spending and the number of large contracts available there will probably be more efforts to expand competition and restrict protectionist policies.

Tags: civil economy, Contract Awards, controversy, decline, defense business, defense spending, european union, India, Italy, member countries, offsets, protectionist policies, total value, typhoon

Boeing Names Greg Hyslop to Lead Missile Defense Division – Press Release

March 18, 2009 by Matthew Potter · Comment
Filed under: Boeing, Business Line, Companies, Events, Hires, Press Releases, missile defense

mailgooglecom March 18, 2009 — The Boeing Company [NYSE: BA] today named Greg Hyslop as the vice president and general manager of the company’s Missile Defense Systems division. Hyslop succeeds Scott Fancher, who assumed
responsibility for Boeing Commercial Airplanes’ 787 Dreamliner program in December 2008.

In his new role, which takes effect immediately, Hyslop reports to Roger Krone, president of Network and Space Systems, a business unit of Boeing Integrated Defense Systems. Hyslop will oversee an organization of more
than 3,500 employees in nine major operating locations across the United States. MDS develops advanced missile defense systems and integrated missile defense solutions for all phases of ballistic missile threats. “Greg brings broad experience managing highly complex programs and a successful track record of leadership on those programs,” said Krone.
“Greg’s ability to deliver results and inspire the team will help us continue building on the success of our missile defense business.”
In his 26 years with Boeing, Hyslop has held a number of executive leadership positions in engineering and program management. His most recent role was leading the Ground-based Midcourse Defense program. Prior to that assignment, Hyslop was vice president and program director of the Airborne Laser program.

Hyslop received a bachelor’s degree in electrical engineering from the University of Nebraska, a master’s degree in mathematics from the University of Nebraska, and a doctorate in systems science and mathematics from Washington University in St. Louis, where he also served as an adjunct professor.

In addition to the GMD program, the MDS division manages the Airborne Laser program, directed energy systems programs such as the Advanced Tactical Laser, and the Missile Defense National Team systems engineering and integration organizations.

A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world’s largest space and defense businesses specializing in innovative and capabilities-driven customer solutions, and the world’s largest and most versatile manufacturer of
military aircraft. Headquartered in St. Louis, Boeing Integrated Defense Systems is a $32 billion business with 70,000 employees worldwide.

Contact Info:
Chuck Cadena
Boeing Missile Defense Systems
(703) 872-4503
chuck.cadena@boeing.com

Joe Tedino
Boeing Network & Space Systems
(703) 872-4097
joseph.j.tedino@boeing.com

Photo courtesy of the Boeing Company

Tags: 787 dreamliner, adjunct professor, airborne laser program, ballistic missile threats, boeing commercial airplanes, boeing company, defense business, degree in electrical engineering, energy systems, executive leadership positions, fancher, ground based midcourse defense, hyslop, integrated defense, missile defense systems, nyse, space systems, systems science, university of nebraska, washington university in st louis

Boeing’s role in defense aviation shrinks

April 9, 2008 by Matthew Potter · 1 Comment
Filed under: Boeing, Military Aviation, commercial aviation, development program

This good article in The Seattle Times summarizes how defense aviation is playing a less-and-less role in Boeing’s business. See the article here. It traces how from World War II on Boeing built large transports, tankers and bombers for the US Army Air Corps and Air Force. Now, with the loss of the KC-45 contract, they really are not doing any such business. They obviously rely primarily on their civil aircraft for the bulk of their earnings and profits. Boeing defense business is starting to be more and more in the area of engineering services and total program development and management. They were the Lead System Integrator (LSI) on what used to be called National Missile Defense (NMD) in the Nineties. They have also had similar roles in other major contracts.

Tags: army air corps, Boeing, boeing defense, bombers, civil aircraft, defense business, development and management, Earnings, engineering services, lead system, lsi, national missile defense, nineties, nmd, seattle times, system integrator, tankers, transports, us army air, world war ii

GD to expand facility in Maine

March 5, 2008 by Matthew Potter · Comment
Filed under: Contract Awards, General Dynamics, Maine, production program

Even Maine is getting in on the defense business as General Dynamics announced that they will be expanding a facility in Saco, ME to build machine guns for the US military. See the press release here. The contract was for $36 M, but not all the work will be done at that facility.

Tags: defense business, General Dynamics, machine guns, Maine, press release

EADS and Tata ink agreement

February 19, 2008 by Matthew Potter · Comment
Filed under: BAE Systems, EADS, India, Sikorsky, Tata, commercial aviation

Tata just does not make the cheapest car in the world, but has now begun forging agreements with foreign defense companies to bid on Indian contracts. See The Financial Times for more on this. Tata has joined with EADS to begin preparation for bidding on a communication contract. They have signed with Sikorsky to make helicopter cabins, and is also in talks with BAE. This is a sensible way for the large company to begin getting into the defense business. Of course, with the US companies the export controls may limit what they can do.

Tags: defense business, export controls, financial times, helicopter, indian contracts

CACI Awarded $31 Million Task Order to Help Business Transformation Agency Modernize Defense Financial Systems

March 20, 2010 by Business Wire Defense: Contracts News · Comment
Filed under: Syndicated Industry News

ARLINGTON, Va.--(BUSINESS WIRE)--CACI International Inc (NYSE: CACI) announced today it has been awarded a task order valued at approximately $31 million to help the Department of Defense Business Transformation Agency (BTA) implement the Oracle® E-Business Suite in support of BTA’s Defense Agency Initiative (DAI) program for the Office of the Secretary of Defense (OSD) and other defense agencies. The contract, which is new business for CACI, was competitively awarded under the Defens