Filed under: Alabama, Alliant Techsystems, Austal, Business Line, Companies, Congress, Contract Additions, Contract Awards, Events, General Dynamics, Lockheed Martin, Marinette Marine, production program, Services, States, U.S. Navy, Wisconsin
The building of a modern warship requires not only the initial large contract with the builder but numerous other ones to buy components and support for the actual ships. Other systems are purchased with separate contracts and then items are provided to the builder for installation on the ships as they are assembled. The U.S. Navy is currently building new aircraft carriers, missile destroyers, Littoral Combats Ships (LCS), amphibious warfare ships as well as support vessels.
The LCS is being built by 2 different yards under 2 separate contracts. The LCS-1 design are made in Wisconsin by Marinette Marine and Lockheed Martin (LMT). The LCS-2 in Mobile, AL by Austal America and General Dynamics (GD). While they have dissimilar hull designs the basic weapon fit remains the same and both will carry mission modules. Up to 20 LCS are on contract to be built with the Navy periodically issuing contracts for 2 from each builder.
2 related contracts were recently awarded to support U.S. Navy ship construction. First General Dynamics (GD) received one for 8 MK 46 Naval Weapon Systems. The MK 46 is a 30mm cannon mounted in a stabilized turret. These will be installed on LPD-12 amphibious assault ships and the LCS. The contract is worth $26 million and is a follow on to previous contracts under which 30 systems have been delivered.
Then ATK (ATK), the ammunition and explosive manufacturer, received a contract for 30mm ammo. This $12 million contract is for incendiary rounds for the MK 46. It is a 5 year Indefinite Delivery / Indefinite Quantity (ID/IQ) contract with 1 base and 4 option years. As an ID/IQ the Navy will order off of the contract what is required to outfit ships with the Mk 46 weapon.
With Sequestration and the budget reductions recently passed by Congress and agreed to by the Obama Administration FY13 will probably not see many more major contracts awarded. There may be many though like these to support bigger programs already underway.
Filed under: Business Line, Companies, Contract Additions, Contract Awards, development program, Events, Lockheed Martin, Military Aviation, production program, Services, U.S. Air Force
Lockheed Martin (LMT) has completed deliveries of the F-22 Raptor to the U.S. Air Force. Based on past experience the aircraft may remain in service to well into this century. Due to this projected service life the Government just awarded a contract to continue upgrades to the aircraft.
Similar to one issued in 2003 this almost $7 billion Indefinite Delivery / Indefinite Quantity (ID/IQ) contract will allow the Air Force to buy the necessary technical services and work to integrate new electronics, weapons and sensors onto the aircraft. The contract is for 10 years.
Like all ID/IQ contracts there is no guarantee that any work will be awarded or the full value of the contract reached.
The previous contract too had a value of over $7 billion and supported integration of different Increments for the aircraft.
The F-22 was developed over two decades ago and was in production for over ten years. It is not surprising that there will be new weapons such as the Small Diameter Bomb (SDB) or missile systems that need to be added. There will also be new air-to-air systems as well as data links, sensors and more efficient electronics and engines that ultimately could be added to the aircraft.
It is also conceivable that some of the technology being developed for the F-35 could also be added to the F-22 like the new helmet.
As with many military systems the OEM will be making money off of them well after production ends.
Filed under: Alliant Techsystems, Business Line, Companies, Events, Press Releases, production program
ATK’s Multi-Option Fuze Provides Increased Mission Capability for U.S. Navy’s 5-inch Gun Ammunition
Five-Year Production Contract to be Performed at Allegany Ballistics Laboratory in Rocket Center, W. Va.
ARLINGTON, Va., Dec. 6, 2012 /PRNewswire/ — ATK (NYSE: ATK) announced that it received a five-year, Indefinite Delivery, Indefinite Quantity (IDIQ) contract from the U.S. Army Contracting Command for the production of the MK 437 Multi-Option Fuze, Navy (MOFN). The contract has a maximum total value of $84.1 million. ATK has received the first order on this contract, for approximately $13 million. Deliveries are scheduled to begin in November 2013.
The MOFN increases the overall mission capability of 5-inch gun ammunition used on U.S. Navy ships by providing proximity, precision time, delay and point detonating impact functions in a single fuze. The inductive fuze setting feature also optimizes MOFN for use with automated ammunition handling equipment. MOFN will be used on projectiles fired in the MK 45 Single Lightweight Gun Mount on U.S. Navy cruisers and destroyers.
“ATK is pleased to add MOFN to our portfolio of fuze production programs. MOFN leverages ATK’s design, development and production experience, providing the U.S. Navy with an affordable, reliable fuze for its 5/54 caliber ammunition,” said Dave Fine, ATK’s Director of Fuzing and Warhead programs.
“ATK has a strong program and manufacturing team dedicated to producing MOFN for the U.S. Navy,” said Cary Ralston, vice president and general manager of ATK Missile Products Division. “This award reflects the tremendous dedication and commitment of our highly-skilled workforce and our industry partners.”
Production of this fuze will occur at the Allegany Ballistics Laboratory (ABL) facility in Rocket Center, W. Va. ABL is a U.S. Navy-owned, ATK-operated facility specializing in advanced manufacturing technologies for a variety of programs supporting current and future U.S. industrial base needs in advanced fuzing and integration, conventional munitions assemblies, solid rocket motor propulsion, and advanced material structures.
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.
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: changes in governmental spending, budgetary policies and product sourcing strategies; the company’s competitive environment; the terms and timing of awards and contracts; 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.
Filed under: ADSI, Business Line, Companies, Contract Awards, Department of Defense, development program, Events, logistics, production program, Services, U.S. Navy
The U.S. Navy is heavily involved in operations in Afghanistan by providing civil engineering support. The “SeaBee” units of construction personnel provide the ability as they have done since World War II to build facilities and provide services. In the day of the IED and mine their equipment needs to be armored and protected to survive this threat and protect their crews. As part of this effort the Navy awarded three companies the chance to provide up-armoring to the civil engineering equipment. One of these companies is American Defense Systems, Inc. (ADSI).
The contract allows the Navy to choose who will receive contracts under an Indefinite Quantity, Indefinite Delivery (ID/IQ) structure. There is no guarantee that ADSI or the other companies will win work but it represents a good step forward for the company. The contract allows a maximum of $50 million awards and this is larger then any previous quantity received by ADSI.
ADSI makes modular add on armor kits that are fit to the individual vehicles as necessary. This allows them to be applied to an array of different systems. They also may be applied in theater as well as in the U.S.
With the threat from the IED and mine as well as direct fire the U.S. has been moving over the last five-or-six years to develop up armored vehicles of all types. This is perhaps best exemplified by the use of the Mine Resistant Ambush Protected (MRAP) vehicles used for troop transport and engineering work.
Filed under: Business Line, Contract Awards, Department of Defense, Events, Intermec, IT, logistics, production program, Services, USCG
Continuing their investment in Radio Frequency Identification (RFID) the United States’ Defense Department awarded an Indefinite Quantity/Indefinite Delivery (ID/IQ) contract for RFID equipment. Intermec, Inc. was one of the winners. If all options on the contract are awarded it could be for nine years with a value up to $418 million.
Intermec has been making equipment for the electronic tracking of goods for over twenty years and has received significant contracts from DoD in the past. RFID has made it easier and more efficient to track and ship materiel by providing quick means to identify cargo and route it. Under the Automatic Identification Technology (AIT) – IV contract not only DoD entities but the U.S. Coast Guard, NATO and other allies as well as foreign countries may purchase this technology. Intermec like with all ID/IQ contracts is not necessarily guaranteed any work from it depending on how the U.S. wants to exercise the contract.