UTC Aerospace Systems awarded aftermarket contracts to support U.S. Navy’s V-22 program — Press Release
Filed under: Business Line, Companies, Contract Awards, Events, logistics, Military Aviation, Press Releases
CHARLOTTE, N.C., Dec. 11, 2012 /PRNewswire/ — UTC Aerospace Systems secured aftermarket contracts for Constant Frequency Generator (CFG) repairs and retrofits, and upgraded spares for the U.S. Navy’s V-22 program. The V-22 is flown by both the U.S. Navy/Marine Corps team and the U.S. Air Force. UTC Aerospace Systems is a unit of United Technologies Corp. (NYSE: UTX).
“UTC Aerospace Systems is delighted to support the U.S. Navy’s V-22 program,” said Steve Hilliard, general manager, Military Programs, Power, Controls & Sensing Systems, UTC Aerospace Systems. “The upgrades to our Constant Frequency Generator enhance our product while delivering a high return on investment for NAVSUP.”
UTC Aerospace Systems is the sole supplier on the CFG application for the V-22 program and its aftermarket contracts are valued at $70 million.
Under the initial contract awarded in September 2011, UTC Aerospace Systems began supplying kits to NAVSUP Weapon Systems Support Philadelphia in support of the V-22 CFG Loss of Lube retrofit with a period of performance of 20 months. In September 2012, UTC Aerospace Systems received a contract from the U.S. Navy for V-22 CFG repairs and upgrades over a five-year period of performance. Most recently, UTC Aerospace Systems received a contract award and delivery orders from Defense Logistics Agency, Philadelphia, for V-22 CFG spares for the U.S. Air Force and spares for the U.S. Navy and Marine Corps team.
The V-22 CFG consists of three of UTC Aerospace Systems’ mainstay electric power products: a Constant Speed Drive, a Generator, and a Generator Control Unit, packaged into a single Line Replaceable Unit. This upgrade program is the culmination of four years of cooperative effort between NAVAIR, Boeing, Bell, NAVSUP Weapon Systems Support, and UTC Aerospace Systems to enhance the reliability of the CFG and by improving the overall operational readiness of the aircraft.
UTC Aerospace Systems designs, manufactures and services integrated systems and components for the aerospace and defense industries. UTC Aerospace Systems supports a global customer base with significant worldwide manufacturing and customer service facilities.
United Technologies Corp., based in Hartford, Conn., is a diversified company that provides high-technology products and services to the aerospace and building industries.
www.utcaerospacesystems.com
ATK Keeps Major Contract for Lake City Plant
Filed under: Alliant Techsystems, atk, Business Line, Companies, Contract Additions, Contract Awards, Events, logistics, production program, Services, U.S. Army
Alliant Techsystems (ATK) is a mid-sized defense contractor. It primarily manufactures ammunition, pyrotechnics and rocket motors. The company is experiencing some struggles due to the ending of the fighting in Iraq and Afghanistan and the potential defense budget cuts. It has made several changes recently to adjust to these new market conditions but key to the company’s near term success was retention of the contract from the U.S. Army to manage the Lake City ammunition plant operations.
Last year the company lost the contract for the Radford Plant in Virginia to BAE Systems (BAE:LSE). BAE was also aggressively targeting the Lake City contract as well. ATK had run these plants responsible for large amounts of ammunition and explosives for the U.S. military for several years and they were a core part of their revenue and earnings. Short term the loss of the Lake City contract would have been a blow to the company.
Yesterday it as announced that the Army had decided to award the contract to ATK again. The initial contract is for seven years but it has options for a further three. No value has been reported yet.
To indicate the size of the production at Lake City in September the company and Army celebrated the delivery of 2 billion 7.62mm rounds from the plant. Due to the demands of the last ten years of combat ATK had expanded the plant to produce over 1.5 billion rounds annually of 5.56mm as well as other sizes.
The winning of this contract gives ATK more time to continue its adjustments and reorganization to address the changing market it finds itself in and establish a good foundation for future performance.
U.S. Army Places Contracts for Defensive Radars
Filed under: Business Line, Chemring, Companies, Contract Additions, Contract Awards, Events, Lockheed Martin, logistics, NIITEK, production program, Services, U.S. Army
U.S. troops deployed to Afghanistan primarily face a threat from indirect weapons. These include rockets and mortars used at their static facilities and the ever present mine and Improvised Explosive Device (IED) to vehicle and foot movement. The U.S. Army placed yesterday two contracts for systems to help counter these threats.
First, Lockheed Martin (LMT) received an option on an existing contract to procure more TPQ-53 counterfire radars. These provide detection and warning of mortars and rockets and allow defensive and counter measures to take place. This contract has a value of almost $400 million and will procure 33 sets of equipment. Earlier the Army had issued a contract for 12. These radars have been in development since 2007 and use since last year.
The Army also placed an Indefinite Delivery/Indoctrinate Quantity (ID/IQ) contract with NIITEK, a subsidiary of Chemring Group PLC, for their Husky Ground Penetrating Radar. This contract has a total value of close to $600 million if all options are exercised. The initial contract is worth $161 million. With all ID/IQ contracts the government does not have to spend anything or just a part of the total value.
The NIITEK Husky is a radar mounted on a vehicle used to detect mines and other threats buried in the ground. It also includes a metal detector if desired. The system supports route clearing and checking as part of a convoy or on separate missions.
These two contracts demonstrate that the U.S. still meets significant threats in Afghanistan and that the U.S. is being innovative in meeting them. It also shows that the U.S. will invest in systems for these missions despite budget and deficit issues.
Air Force Will Attempt Second Contest for Light Air Support Aircraft
Filed under: Boeing, Brazil, Business Line, Companies, Congress, Contract Awards, Countries, Department of Defense, development program, Embraer, Events, Federal Budget Process, Hawker Beechcraft, Lockheed Martin, Military Aviation, production program, Proposal, Protest, Services, Sierra Nevada, U.S. Air Force
Following up on its decision to cancel the initial contract to Sierra Nevada and Brazil’s Embraer for the initial order of Light Air Support (LAS) aircraft for use by the Afghan military the U.S. Air Force now plans a new contest. The contract was protested by Hawker Beechcraft whose T-6 based proposal was removed from the competition. After the start of an investigation into the source selection which continues the service’s leadership decided to end the first attempt and begin again.
The Air Force investigation found that there was not sufficient justification for the decisions to remove Hawker and award the $300 million contract to Sierra Nevada. This company teamed with Embraer which would see their Tucano based system assembled in Florida.
Now it is expected that an amended Request for Proposals will be issued in the near future allowing the two companies to compete again.
If the program goes as planned it could be worth up to $1 billion in orders.
With the new proposal process it is hoped that a decision will be made next year.
Hawker is struggling and may face bankruptcy in the near future and the LAS win would be a major boon for the company. Brazil is looking at buying a new fighter and Boeing’s (BA) F/A-18 is one of the major contenders and a win for Embraer is believed to be helpful for that contest.
The Air Force has struggled over the last decade with awarding new contracts. There was the long running KC-X tanker program which took three attempts to award finally to Boeing. The new combat rescue helicopter, CSAR-X, went through two iterations but is now currently on hold. The cornerstone of the new Air Force, Lockheed’s (LMT) Joint Strike Fighter, is facing cost and schedule problems. The Light Air Support program seems to continue that trend.
Northrop to Modernize USAF AOC Capability
Filed under: Business Line, Companies, Contract Awards, development program, Events, IT, logistics, Northrop Grumman Corp., Services, U.S. Air Force
The United States Air Force operates Air and Space Operations Center (AOC) in support of different theaters across the world. These assist in the management of the air war by tracking and assigning assets and targets. The consist of several different electronic systems that primarily require human interface to manage. Starting last year the Air Force began a process to upgrade and modernize these systems. The overall system is called the AOC Weapon System.
This week Northrop Grumman (NOC) was awarded an initial contract to begin the modernization project. The value of this award is $120 million but if all options are exercised over the next 8 years it could be worth over $500 million.
The contract calls for Northrop to deliver an AOC WS with better awareness and faster planning and execution through improving information exchange. The plan is also to reduce maintenance and life cycle costs for the AOC WS.
The U.S. has invested greatly over the last fifty years in advanced aircraft with sophisticated weaponry. The AOC WS role is to manage the air battle to maximize the efficiency of those systems. The planned upgrade will help it do that mission better.
Despite Concerns About Lockheed’s Future Earnings Company Wins JIEDDO Contract
Filed under: Business Line, Companies, Contract Awards, Department of Defense, development program, Events, Federal Budget Process, IT, Lockheed Martin, logistics, Restructuring, Services
On the same day that the Standard & Poor’s (S&P) lowered its outlook on U.S. defense contractor Lockheed Martin (LMT) to negative the company also announced a large contract to support the U.S. Defense Department’s anti-Improvised Explosive Device (IED) efforts.
The company was awarded one of five contracts to provide Operations Support to the Joint Improvised Explosive Device Defeat Organization (JIEDDO). The contract is an Indefinite Delivery / Indefinite Quantity (ID/IQ)one that could have a value of up to $900 million depending how the tasks area awarded. The initial contract is for two years with three option years.
The JIEDDO was established by DoD to focus efforts on defeating the mine and IED threat in Iraq and Afghanistan which became the primary method of attack and caused a great deal of casualties. The JIEDDO has focused on technical means to detect and disable IED’s including advanced detection and jamming.
The contract with Lockheed is focused on the operational part of JIEDDO mission with operations, analysis, combat and IT support for JIEDDO’s analytical team.
There has been concern expressed by many in the financial community that the stocks of the large defense contractors will suffer with the proposed reduction in U.S. spending. This will have a negative effect on their revenue and earnings. Of course the cuts may not happen or be as large as discussed. Also major acquisition programs like the F-35 JSF or ship construction will most likely see reductions in quantity rather then outright cancellation. This should cushion the blow to defense contractors.
KC-46A Selected Acquisition Report (SAR) Indicates Higher Costs
Filed under: Boeing, Congress, Department of Defense, KC-X, KC-X Tanker News, Syndicated Industry News, tankers
The Department of Defense is required to submit Selected Acquisition Reports (SAR) annually for Major Defense Acquisition Programs. A SAR is also submitted at the beginning of the program and if a change to the baseline is approved. The KC-46A new aerial tanker program submitted a SAR dated 30 September to Congress and it shows that the current Estimate for Completions (EAC) for the current contract are above the ceiling.
This would mean that Boeing (BA) would make no profit on the initial contract for 17 aircraft as it is responsible for all costs above it.
The Washington Post reports that Boeing’s EAC is a $5.1 billion and the Government’s $5.3 billion. The ceiling is $4.8 billion.
Estimated costs for this initial development of the program have been up-and-down over the last six months but last reports had Boeing still under the ceiling.
The SAR also shows that the Air Force plans to spend $40 billion on procurement for the 179 tankers with the last order placed in 2027.
KC-46A Selected Acquisition Report (SAR) Indicates Higher Costs
Filed under: Boeing, Congress, Department of Defense, KC-X, KC-X Tanker News, Syndicated Industry News, tankers
The Department of Defense is required to submit Selected Acquisition Reports (SAR) annually for Major Defense Acquisition Programs. A SAR is also submitted at the beginning of the program and if a change to the baseline is approved. The KC-46A new aerial tanker program submitted a SAR dated 30 September to Congress and it shows that the current Estimate for Completions (EAC) for the current contract are above the ceiling.
This would mean that Boeing (BA) would make no profit on the initial contract for 17 aircraft as it is responsible for all costs above it.
The Washington Post reports that Boeing’s EAC is a $5.1 billion and the Government’s $5.3 billion. The ceiling is $4.8 billion.
Estimated costs for this initial development of the program have been up-and-down over the last six months but last reports had Boeing still under the ceiling.
The SAR also shows that the Air Force plans to spend $40 billion on procurement for the 179 tankers with the last order placed in 2027.
Training Helicopters for Afghanistan from MD Begin Deliveries
Filed under: Business Line, Companies, Congress, Countries, Events, FMS, logistics, Military Aviation, training
Earlier this year the U.S. Army awarded MD Helicopters a contract to begin production of training helicopters for the Afghan military. The initial contract was for 6 aircraft but up to 54 could be purchased at a value of almost $200 million. The small aircraft would be used for initial pilot training. The Afghan military operates a mix of primarily Russian aircraft suited more to their experience.
The winning of this contract was quite a coup for MD Helicopters and its owner, Ms. Lynn Tilton, as it is the first major U.S. defense contract the company has had since she bought it in 2005.
The six initial aircraft were delivered this week several weeks ahead of schedule. At a ceremony at the company’s Mesa, AZ plant Army officials along with local and national government figures celebrated the acceptance of the systems.
The U.S. has managed the acquisition of weapons for the new Afghan government and military for almost ten years now. They have primarily focused on getting small arms and slowly building up more complex and heavier weapons. Rotary wing assets are key to the fighting in that country due to the roads and the spread out nature of the population. The U.S. and its allies have relied on a variety of their own and leased helicopters to conduct supply and support missions.
The U.S. has already procured several Mil-17 transport helicopters for use by the Afghans. This has raised some hackles in Congress who feel U.S. manufactured equipment should be the priority. The contract to MD Helicopters and one to Cessna for training fixed wing aircraft should mollify some of those critics.
As the U.S. begins its draw down from the area more investment will have to be made in systems like this to help the Afghans get ready to defend themselves. This is an opportunity for U.S. defense contractors to at least gain some of this work and help potentially offset any cuts due to the reductions in U.S. defense spending.
KC-X Contract Will Have Spillover Effects
Filed under: Boeing, Business Line, Companies, Congress, Contract Additions, Contract Awards, Department of Defense, development program, EADS, Events, Federal Budget Process, KC-X, KC-X Tanker News, logistics, Military Aviation, Pratt & Whitney, production program, Rockwell Collins, Services, U.S. Air Force, UTC
The award to Boeing (BA) of the contract to build the new KC-46A tanker will of course affect many other companies. It is one of the largest defense contracts for the next decade. While the total value if all of the planned aircraft are built is closer to $35 billion the initial contract is for $3.5 billion and provides for the initial development and production of the first batch of aircraft.
Because of its size and scope there will be significant work for the subcontractors on the program. Boeing will do final assembly of the aircraft but it needs to procure things like engines, software and aircraft components from other contractors. These are spread out across the country and provide a web of support for Boeing and the program.
The first company that will receive major subcontracts is Pratt & Whitney, part of United Technologies (UTC). They will provide two engines for each aircraft which will be a boost in revenue and work for the next ten years or so. This revenue stream will allow them to maintain production at their facilities and perhaps invest in new engines for other programs.
Rockwell Collins (COL) will also do well. They will make for Boeing the flight deck, software and communications systems. Interestingly they were also supporting the EADS NA (EADS:P) KC-30 program so if either bidder had been chosen they would have won. The company has a history of supporting Boeing aircraft.
The KC-46A contract if it is not protested and delayed will begin to have secondary effects throughout the U.S. defense economy. The Air Force also plans follow on contracts to buy more then the 179 planned tankers under this effort. Those could go to Boeing or to another bidder and they too will have a significant effect on many other defense contractors and suppliers.
Photo from Jerry Gunner’s flickr photostream.
Lockheed Orders C-130J Trainers from CAE
Filed under: Boeing, Business Line, CAE, Canada, Companies, Contract Additions, Contract Awards, Countries, Events, Lockheed Martin, logistics, Military Aviation, production program, Services, Sikorsky, UTC
Canada has been investing over the last several years in significant upgrades to its military as equipment from the Eighties ages and the demands of the fighting in Afghanistan have caused requirements for certain systems. Due to its availability and the need for integration with the larger American forces much of the new procurements are coming from the United States.
These include Boeing’s (BA) CH-47 helicopters and Lockheed Martin (LMT) C-130J transports and in the largest contract of all advanced F-35 Joint Strike Fighters to replace their CF-18 fighters. The JSF team is headed up by Lockheed as well.
Because Canada is buying from a non-domestic source they have written into a lot of their contacts offset rules that require a percentage of the value to be spent in Canada. For example Sikosrky, a UTC company, is providing S-92 helicopters to meet a search-and-rescue mission. In recent contract negotiations to settle delays the company agreed to invest a further $80 million in the Canadian economy beyond the initial contract plan.
As part of the massive JSF contract Lockheed will use a Canadian company, Bristol Aerospace, to build components for the aircraft. One advantage of this contract is that even if Canada reduces its buy or ends the contract Bristol Aerospace will still have the opportunity to make parts of the JSF aircraft being purchased by the U.S. and other Allies.
Then there are contracts that will go to Canadian companies anyway. CAE (CAE:TSX) is a Canadian based company that manufactures flight training devices and simulators for civil and military aircraft. It has operations and facilities all over the world including a substantial presence in the United States.
In the last week they announced they had received a series of contracts for simulators and training aids. These include one from Lockheed Martin to build C-130J weapon systems trainer, a fuselage trainer and a loadmaster part-task trainer. No value for the contract was given.
Even though this contract is not a direct result of the Canadian C-130J buy it illustrates how connected that country’s defense industry is to the American and world market. Canada is not making large systems for itself or other customers anymore but it is certainly providing supporting products and is able to use the offsets and investment by larger foriegn contractors to help its domestic defense industry and economy.
Photo from Stephen Edmond’s flickr photostream.
ANHAM FZCO, LLC Completes Transition to Prime Vendor — Press Release
Filed under: Business Line, Companies, Events, logistics, Press Releases
ANHAM FZCO, LLC Completes Transition to Prime Vendor
ANHAM At Full Performance Level Servicing $2.2 Billion Contract with U.S. Government
Washington, DC – On November 16, 2010, ANHAM FZCO, LLC became fully responsible for the Prime Vendor contract with the U.S. Government, providing full-line food and non-food distribution and support services in Kuwait and Iraq. This marks the end of the seven-month transition from the previous vendor, as outlined in the original contract awarded in April 2010, in which ANHAM became the Prime Vendor for the contract.
The contract requires ANHAM to provide a range of food products – from fresh fruits and vegetables to Meals Ready to Eat (MRE’s) and other operational rations. The contract is estimated at a total aggregate dollar value of $2.16 billion, including options if exercised, with a maximum contract dollar value of $6.47 billion. The initial contract period is 18 months, with options to renew the contract up to six years.
“Serving as the Prime Vendor provides us with the opportunity to build on our track record of performing beyond our clients’ expectations,” said David Braus, managing director of ANHAM. “We have a long history of conducting large scale, successful operations in the most demanding conditions around the world – consistently on time and within budget.”
“ANHAM will streamline our services by working with partner companies that are best suited to meet the needs of the contract. These will include our more than 100 local partners in Kuwait and Iraq,” Braus added.
This announcement comes after a pair of news reports have mistakenly claimed that the transition was no longer continuing as planned. As has been true since November 16, 2010, ANHAM is fully responsible for the contract and will continue to meet the needs of the United States government.
About ANHAM FZCO, LLC
ANHAM, LLC (www.anham.com) is a leading contracting firm working throughout the Middle East and North Africa (“MENA”), Central Asia, and Europe. With more than a century’s worth of experience between its principal founding companies, ANHAM is able to efficiently, effectively, and affordably deliver products and services throughout the world. Headquartered in Dubai, UAE, ANHAM has international offices that specialize in providing local support and services to its initiatives, projects, and investments across diverse regions of the globe.
Framework Seems To Have Been Reached To Allow A400M Resolution
Filed under: Business Line, Companies, Countries, development program, EADS, Events, France, Germany, logistics, Military Aviation, Restructuring, Services
Late last week it was announced that EADS and the customers for the A400M transport seemed to have reached a framework to allow talks to proceed that may resolve the funding issues with the program. Due to about two years of development and integration problems the aircraft only achieved first flight in December, 2009 and now will not deliver the first aircraft until 2012. These have caused EADS and its subsidiary Airbus to spend billions beyond the money planned.
The company is trying to work a deal where the customers pay a large portion of the overruns as the initial contract was a Fixed Price one that did not provide enough funding to cover the delays. EADS has spent over five billion Euros of its own money on the program and is hoping that either through price increases or direct investment the seven major European buyers will cover these costs. Recently EADS had threatened to just go ahead and end work on the program and eat the losses rather then continuing it and losing more money.
After a recent meeting it became clear that most of the countries involved are willing to work out some financial deal with EADS and that company will agree to continue talking. There will be a meeting in early February to begin these discussions. The compromise being discussed would see increased production prices and lower quantities for a few years with EADS absorbing some of the cost overruns internally. Then there would have to be a decision point in the future whether to complete the program’s planned total quantity. One of the two FMS customers, South Africa, already canceled their order due to the price increases proposed by EADS.
The A400M is the premier military aerospace program in Europe and it suffered from the optimistic plan to use a fixed price development contract. Not completing it would be seen as a blow to EADS and European defense integration. At the same time all of the customers are facing financial pressure due to the global downturn and increased social spending. At the same time building only a few of the aircraft solves nobody’s problems.
A400M first flight video from signatoryvideos. http://www.youtube.com/watch?v=oX-kIUYRyDk
England Awards Initial Contract For Combined Training Site
Filed under: Business Line, Companies, Contract Awards, Countries, England, Events, logistics, QinetiQ, training
The English government has ambitious plans to not only centralize their technical training but also privatize it. The goal is to save money within the defense budget. The consortium that is planned to construct and operate the new training site was awarded an initial contract worth almost $60 million to begin site preparation. The Metrix consortium which includes the British company QinetiQ will use this contract to move an existing Royal Air Force (RAF) school and begin demolition of existing buildings. Eventually the total program will be worth billions as the schools are established and classes taught.
The idea is fairly novel and controversial. In the United States for example they are moving away from contractor provided services by insourcing positions to civil service. They believe that this will save money in the long run. It will be interesting to compare how these two different paths work out over the next few decades.
Morocco Completes F-16 Order
Filed under: Business Line, Companies, Contract Awards, Countries, Events, Lockheed Martin, Military Aviation, production program
Two years ago the North African nation of Morocco selected the F-16 Fighting Falcon to be the basis of their new fighter force. They awarded an initial contract in 2008 for the twenty-four aircraft to Lockheed Martin. Now they announced the rest of the money will be paid. The total contract is worth over a billion dollars with the bulk, $840 million, executed this week.
The F-16 serves with many NATO and other U.S. allies as well as Egypt and Israel. Lockheed Martin continues to sell and build the aircraft for overseas sales despite the plans of the U.S. and many other countries to replace or at least supplement it with the F-35 JSF.
Northrop To Provide Laser Targeting Systems To The U.S. Army
Filed under: Business Line, Companies, Contract Awards, development program, Events, IT, Northrop Grumman Corp., production program, Services, U.S. Army
The U.S. Army awarded Northrop a contract to build lightweight laser targeting systems. These will be mounted on a variety of weapon systems. The initial contract is worth about $73 million but if all options are exercised it could generate over $600 million in revenue. The company has been making these types of systems since 2002.
The U.S. military has invested a great deal of money into these kind of systems providing a technical advantage over their adversaries. They not only provide the ability to detect and classify enemy in low or bad visibility but can be used to guide different weapons. These types of systems are fully integrated and are able to provide information to other Army systems and units via digital communications.
Government Moves Out On Controversial Bio-warfare Facility
The U.S. Government awarded the initial contract to begin construction of the new National Bio and Agro-Defense Facility (NBAF) in Kansas. This…
Air Force Begins New Space Tracking System
Filed under: Australia, Business Line, Companies, Contract Awards, Countries, development program, Events, IT, Military Aviation, missile defense, Northrop Grumman Corp., production program, S&T, Satellites, Services, space, U.S. Air Force, United States
The United States Air Force awarded Northrop Grumman a contract to begin development of a ground based radar to conduct surveillance of space objects. The initial contract is worth about $30 million. The current Air Force system was installed back in the early Sixties.
The need for an upgrade to this capability has become more critical in recent years as the amount of near earth objects, space junk and satellites has increased. This system while primarily used to support missions in space will also provide some aid in missile defense. Identifying and tracking space junk will allow better detection of new objects including possible missile launches. The proliferation of objects has also affected launches and operations in space as the threat of collision to manned vehicles is especially dangerous.
Army Moves To Build New Generators
Filed under: Business Line, Companies, Contract Awards, development program, Events, Fidelity Technologies, logistics, Pennsylvia, Services, States, U.S. Army
Due to grounding issues generators provided by KBR led to the accidental deaths of several soldiers in Iraq as they went to take showers. The generators were powering hot water systems. The Army went ahead and designed new systems that are larger and have more sophisticated circuitry to prevent these issues. By centralizing power generation more fuel is saved as well as less individual generators are used.
Fidelity Technologies of Pennsylvania has begun to ramp up to produce these generators. The initial contract is for about $24 million and will produce over three thousand of the generators. In order to meet this new order the company is actually hiring personnel.
This shows that as programs end others start. Different priorities allow companies to move into niches that may not have existed before. This allows new business lines to develop and grow. Unfortunately the boom-or-bust nature of U.S. defense procurement can make this difficult for sustained growth or stability.
Wave Dispersion Technologies, Inc. Signs Partnership Agreement with Abu Dhabi’s International Golden Group, Initial Value in excess of $100 million USD – Press Release
Filed under: Business Line, Contract Awards, Countries, Events, Press Releases, production program, UAE
Also WhisprWave® Floating Security Barrier Solutions (FSB’s) Deployed for the Protection of Critical Maritime Infrastructure in UAE
Abu Dhabi, UAE, Summit, NJ, March 2, 2009 – Wave Dispersion Technologies, Inc. (WDT) and International Golden Group (IGG) have entered into a strategic partnership agreement for the provision of Floating Security Barriers (FSB) / Vessel Exclusion Barriers (VEB) to be installed at critical maritime infrastructure sites in the UAE encompassing oil, gas, power generation, and desalination facilities.
The contract covers 3 years, including the initial contract period with options, and has a value of USD $100 million, if all options are exercised and performance incentives are achieved. The initial production of the contract is being manufactured in Norfolk, VA, USA. The contract provides that WDT will utilize its WhisprWaveÒ Technology to ultimately manufacture FSB components locally in the UAE and provide related maritime services in support of the protective systems.
The initial phase of this agreement is to undertake a pilot project at one of the critical maritime infrastructure sites in Abu Dhabi. Following a successful pilot project with security issues achieved as planned, the partnership agreement will be extended to cover other critical maritime infrastructure sites within the UAE.
The FSB is designed with inherent flexibility to provide a platform that enables the addition of CCTV, Radar, Sonar, Anti-Swimmer Detection and Anti-Intrusion Detection Systems. Moreover, the system will act as a limited wave attenuator and with the addition of an attached oil boom will limit the affected area of oil spills.
According to Mr. Fadil Al Kaabi, CEO of IGG, “This partnership represents a great example of the cooperation between the UAE and USA in sharing technology and expertise to help secure our critical national maritime infrastructure. We look forward to working with WDT to further market this technology throughout the Middle East.”
According to Dennis G. Smith, CEO of WDT, “WDT has successfully marketed and installed its WhisprWaveÒ Technology in the USA, and elsewhere, but this agreement represents a true extension and prime example of cooperation by the USA to meet the UAE’s need for cutting edge technologies and foresight to proactively protect its critical maritime infrastructure. We look forward to a long and prosperous relationship with IGG.”
About Wave Dispersion Technologies, Inc.:
http://www.whisprwave.com/ – The Global Leader in Maritime Homeland Port Security Barrier & Buoy Protection Systems
Wave Dispersion Technologies, Inc. (WDT) has developed the patented WhisprWave® floating articulated breakwater technology to afford erosion control protection to shoreline beaches, coastal marinas, anchorages, and other areas subject to destructive erosive wave / wake forces. In addition the WhisprWave® security barrier designs are currently installed, being demonstrated or being reviewed by many US Government Agencies and Foreign Sovereigns including but not limited to the US Army Corp of Engineers “USACE”, US Navy “USN”, US Coast Guard “USCG”, US Army “USA”, USMC MEF Iraq, US Bureau of Reclamation “USBR”, UAE CNIA, NAOC, and other clients for applications that range from Homeland Security / Force Protection to Beach Erosion Protection to Marina Wave & Wake Protection.
WhisprWave® breakwater technology has wide ranging maritime applications from erosion control to homeland security. The Company has been developing the technology for over 10 years and holds 9 Domestic and International Patents for the WhisprWave®’s unique design and utility, with an additional 23 patents pending.
WDT is a Listed Featured Private Company on http://www.homelanddefensestocks.com/, http://www.borderandportsecurity.com and the Investor Ideas Home page http://www.investorideas.com/
About International Golden Group:
International Golden Group LLC is a well established company in Abu Dhabi-UAE specialized in providing High-end Security & Defense Solutions with an excellent reputation in the UAE and Gulf market.
IGG has entered into long-term strategic business alliances with other local and international companies relying on a professional team of highly dedicated and experienced personnel along with a worldwide network of agents and affiliates committed to providing high- level services to its customers.
Through the implementation of the latest advanced technology, IGG is now capable to supply a variety of military, security, civilian and COTS products and technical solutions for various purposes related to the security needs of its clients.
International Golden Group LLC has positioned itself to become soon a first-class manufacturer of special products for the local and regional defense markets.
Contact:
Managing Director
Jonathan B. Smith
248-229-9010
[email protected]
Media / Investors:
Dawn Van Zant, [email protected]
www.HomelandDefenseStocks.com, Investorideas.com
Source: Wave Dispersion Technologies, Inc
French Senators Discuss A400M Termination
Filed under: Business Line, commercial aviation, Companies, Countries, development program, EADS, Events, France, logistics, Military Aviation, production program
We have written in the past about the struggles EADS has had with the A400M program. Now CNNMoney.com reports that the French Senate has released a report about the program. The report continues the negative drumbeat about the delays to the delivery schedule, but continues support for the program. One Senator involved though said it might be cheaper to end the program and start afresh. The initial contract does allow the French government, as well as those others buying the aircraft, to end their support for the program and actually have EADS pay back any investment into it. This would amount to a loss of this over two-and-a-half billion Euros to EADS. If the program fails the plan would be to buy C-17 and C-130 aircraft from America which would be somewhat humiliating for the European Union.
USCG Cutter Contract Protested
Filed under: Contract Awards, production program, Protest, U.S. Dept. of Homeland Security
One of the losing bidders on a contract to build new cutters for the US Coast Guard, Marinette Marine, protested the award to Bollinger Shipyards for a new class of small ships the Milwaukee Journal-Sentinel reports.. The initial contract is for $80 M and will begin a program that might see up to 34 ships procured. This program arose out of a failed attempt to upgrade existing USCG ships by extending the hull and adding capability. Bollinger was heavily involved in that program, and some feel that the past performance there should have disqualified them from participating in this contract. Marinette Marine has previously built other ships for the USCG as well. The Government Accountability Office (GAO) has 100 days to rule on the protest. Normally the contract is put on hold while the protest is resolved.
USMC buys wireless communications from TeleCommunications Systems
Filed under: Contract Awards, IT, logistics, production program, TCS, U.S. Marine Corps
The USMC exercised a contract with TeleCommunications Systems to buy their Wireless Point-to-Point Link (WPPL) system to support deployed forces. The initial contract is worth about $3 M, but the company hopes to grow this through options to a total of $70 M by 2011. The WPPL System provides network and communication wireless capability to support maintenance and logistic activities. It is able to use line-of-sight and non line-of-sight capabilities to do this.
For more see the press release at the Wall Street Journal’s MarketWatch.com.
Seattle Times’ Analysis of Boeing Contract Win
Filed under: Boeing, Northrop Grumman Corp., Protest, U.S. Air Force
In this article entitled Boeing Wins Tanker Protest, But Drama Is Far From Over, the Seattle Times states:
The saga of the Air Force refueling tanker contract is not over by a long shot, though Boeing won a huge victory Wednesday when the Government Accountability Office (GAO) comprehensively backed the company’s protest of the initial contract award.
Read the original article here.
OSI Systems Receives Approximately $3 Million in Initial Contract Awards from Two Major International Airlines for Air Cargo Inspection Equipment
HAWTHORNE, Calif.–(BUSINESS WIRE)–OSI Systems, Inc. (NASDAQ: OSIS), a vertically-integrated provider of specialized electronic products for critical applications in the Security and Healthcare industries, today announced that its Security division, Rapiscan Systems, has received initial contract awards to supply air cargo inspection systems to two major international airlines. The contracts have a combined value of approximately $3 million. Under the terms of the agreements, Rapiscan will be t
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