BAE To Work With Arsenal On Armor

In a somewhat of a reverse of the normal situation BAE Systems has contracted with the government owned and operated Rock Island Arsenal to develop new lightweight armor. The normal situation is the government contracting with a company to help design, develop and manufacture a new product. There was no value given on the work to be done under this agreement.

In the past the U.S. military’s arsenals performed development, testing and manufacturing of weapons. There work had been winding down over the last twenty years with more work going to private companies. In some case the contractor would utilize government owned space on the facilities or build their own factories on government land.

Since 9/11 and the operations in Iraq and Afghanistan the work for the arsenals has increased greatly. At Anniston Army Depot in Alabama for example there has been a great deal of work done on rehabbing M1 tanks and small arms. In this the government staff has worked alongside contractors.

Rock Island Arsenal will provide their expertise in manufacturing to help BAE Systems work on new armor systems for vehicles.

Unitech to be Purchased by Lockheed

Lockheed Martin has agreed to buy Unitech sometime this year.  Unitech is a smallish simulation producing company located in the Orlando area.  The Orlando Sentinel reports that a deal to buy the company was worked out recently. Unitech complements the work that Lockheed has done in the simulation area in Orlando for years. The company has earnings of around $140 million, and it is common in these types of deals for private companies to pay about one year’s earnings for it. Many smaller defense contractors grow from one or two contracts to a size of between one to two hundred million and are then bought by another company. Larger companies buy them to gain work or expertise in a discipline or area that they might not have.

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