RSAF Awards BAE Systems Support Contract For Typhoons
Filed under: BAE Systems, Business Line, Companies, Contract Awards, Countries, England, Events, Military Aviation, Saudi Arabia, development program, logistics, production program
A few years ago Eurofighter sold the Royal Saudi Air Force (RSAF) seventy-two Typhoon advanced fighters. BAE Systems is one of the three major companies that make up Eurofighter which is also providing aircraft to Germany, England and Italy.
BAE Systems is under investigation by the English government for possible bribes involved in the deal with the Saudi military. Despite these allegations Saudi Arabia went ahead and awarded a logistics support contract to the company. The value of the contract was not announced but a similar award by England was worth over $700 million.
BAE Systems will provide logistical support, maintenance and parts as well as training for the RSAF under the contract for the next three years. This is not an uncommon contract where the provider of the hardware will also provide training and support possibly until the operator transitions to organic support or lets another contract.
Royal Navy Awards BVT Surface Fleet Support Contract
Filed under: BVT Surface Fleet, Business Line, Companies, Contract Awards, Countries, England, Events, development program, logistics, production program
The United Kingdom faced with growing delays in constructing their two new aircraft carriers and amid concerns of declining investment in their work force awarded BVT Surface Fleet a support contract for the new class of Type 45 destroyers. The total contract is worth over $600 million and will last seven years. The contract calls for BVT Surface Fleet to centrally manage the support and maintenance of the ships.
BVT Surface fleet is the builder of the ships as well. The Type 45 is a new air defense ship to replace the Type 42 class of Falkland Islands fame. They are almost fifty percent larger then the older ships and carry a modern suite of radars and missiles jointly developed with other European countries. The ship also has a stealthy design and has a reduced radar signature.
England had let a contract to begin construction of two new aircraft carriers but due to the financial situation of the country these have seen delays. This has led to concerns of job losses and this contract is one way of helping to prevent those kind of issues.
SAIC Wins IED SETA Contract
Filed under: Business Line, Companies, Contract Awards, Department of Defense, Events, S&T, SAIC, SETA, Services, development program
The United States Department of Defense awarded a Scientific, Engineering, Technical and Analytical (SETA) support contract for the Joint Improvised Explosive Device Defeat Organization (JIEDDO) to SAIC. The contract is for five years and has a ceiling amount of over $400 million. SETA support will cover all aspects of program management and engineering efforts by the organization.
The IED has proved to be the major threat to U.S. forces in Iraq and Afghanistan for the last five years or so inflicting a significant number of casualties. The DoD has set up and run a variety of organizations to coordinate the efforts to defeat them. At one point there was a joint program office and now this organization. All different types of defenses have been looked at and the most visible is the MRAP.
MRAP are passive defenses using armor to defeat the mines and blast weapons. Active defenses have been jammers to prevent the command detonators as well as different detection systems. The U.S. has poured a great deal of money into this effort and this contract reflects that. There is of course no guarantee that all of the contract will be awarded to fill the ceiling.
Reports Are That Canada Not Happy With C-130J Maintenance Costs
Canada is having a hard time negotiating a support contract with Lockheed Martin for the new C-130J transports it has agreed to purchase.Northrop Gets Two Big Sustainment Contracts
Filed under: Boeing, Business Line, Companies, Contract Awards, Department of Defense, Events, Military Aviation, Northrop Grumman Corp., Services, U.S. Air Force, U.S. Navy, logistics
Like Boeing recently winning a billion dollar support contract from the Air Force for the C-17 fleet Northrop Grumman received two large sustainment contracts yesterday. One each from the Air Force and the Navy. This kind of work certainly represents a good revenue stream for the contractors developing and producing large systems.
The first is for sustainment and maintenance of the B-2 fleet. This contract may be worth up to $3.4 billion over the next several years. The twenty aircraft fleet requires substantial support due to the complicated nature of the materials that it is made out of. The B-2 has been active in the former Global War on Terrorism as it does carry a large payload of conventional weapons.
The second contract is to refuel and refurbish the U.S.S. Theodore Roosevelt (CVN-71). This was the third Nimitz class carrier to be built. This contract has a value of over $2.4 billion and will cover a three year period of work. This is a one time maintenance action that is expected to continue the life of the ship out 2036. As part of the contract Northrop Grumman at Newport News shipyard will upgrade a whole host of systems and improve the capability of the ship overall.
These types of contract are very valuable to a company as they provide a steady stream of income over several years. The major cost of a modern weapon system is not the development or procurement but the sustainment over the very long life that are exhibited today. The United States for example is flying fifty year old B-52 aircraft and driving twenty-five year old M1 tanks. Both systems have received constant maintenance and upgrades over the years keeping them relevant to the modern war fight.
Raytheon Wins Another PATRIOT Contract
Filed under: Business Line, Companies, Contract Awards, Department of Defense, Events, Lockheed Martin, MDA, Military Aviation, Raytheon, Services, U.S. Army, development program, missile defense, production program
Raytheon the maker of the radar for the PATRIOT air and missile defense missile system as well as being the overall system integrator was awarded another support contract today by the U.S. Army’s PEO(Missile). This contract is for about $115 million to upgrade radars for four PATRIOT systems.
Raytheon has been the prime contractor for the system since its inception. With the current PAC-3 version Lockheed Martin makes the interceptor, but for the original and PAC-2 Raytheon was the source for the missile as well as the radar. PATRIOT remains the primary ground based system for the Army to protect against air and missile threats. The system has slowly been upgraded since 1990 on to deal with more advanced missiles.
AugustaWestland Work Force Worried About VH-71 Contract
Filed under: Agusta Westland, Business Line, Companies, Congress, Contract Awards, Countries, Department of Defense, England, Events, Federal Budget Process, Italy, Lockheed Martin, Military Aviation, Restructuring, Services, U.S. Navy, development program, production program
While Finmeccanica has stated that they are not worried about the pending cancellation of the VH-71 new Presidential helicopter as proposed by Secretary Gates, there is concern at AugustaWestland’s facility in Yeovil, England. The local paper reports that if the program is ended there would be major cuts to the work force at that facility. AugustaWestland is not coming out and stating anything in this regard, but much of the work going on there supports the two phases of the program. As Finmeccanica has said Phase II has not yet started and that is why their earnings would not be effected in the next few years — no money has been spent on that part of the program. AugustaWestland makes the base helicopter which is then modified by Lockheed Martin in New York. The company would also provide support to the delivered aircraft. The contract while it is only for 23 aircraft is very large due to the cost of the individual platforms and the necessary modifications. The support contract would also be significant. The cancellation is just a recommendation right now and ultimately Congress will decide whether to end the program, restructure it, or just continue the current path.
US Joint Forces Command awards SETA contract
VMD was awarded a SETA support contract by Headquarters USJFCOM. This is to provide program management, technical and financial support to the Command. The contract is for 5 years and could be worth over $21 M. USJFCOM is primarily based in the Hampton Roads area of Virginia, but also has offices in the Washington DC area. Work will be performed at these locations.
See the press release here on MarketWatch.com.
John Murtha pork creation wins Army contract
The Concurrent Technologies Group, a company created by John Murth (D-PA) through earmarks to help Johnstown, PA was one of the eight contractors qualified under a new US Army intelligence support contract. The local story is here. This is a large $1 B contract in total, but it probably is one where no qualified team is guaranteed work, but can apply for the various tasks as they come up. Mr. Murtha, as recently profiled on CBS News, rains earmarks on the Johnstown, PA area and CTG is the largest beneficiary of this. That does not mean they cannot do the work required in this case, but many times the earmarks are for things the Services did not request or desire.
Navy awards AEGIS contract
Filed under: Contract Awards, General Dynamics, MDA, SETA, U.S. Navy, development program, missile defense, production program
General Dynamics won an engineering support contract from the Navy for support to the AEGIS missile system. See the story here. They will support the sea-based system that recently shot down the wayward spy satellite. The contract is worth $191 M.
UnitedHealth Military & Veterans Services Statement on the TRICARE South Region Contract Protest
Filed under: Syndicated Industry News
Aetna Statement on TRICARE North Region Contract Protest
Filed under: Syndicated Industry News
XTec Incorporated Tapped by U.S. Department of Homeland Security to Provide Logical Access Solutions
Filed under: Syndicated Industry News
Largest U.S. Ammunition Port, Military Ocean Terminal Sunny Point, Renews Commitment to Tideworks Technology
Filed under: Syndicated Industry News
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