ATK Announces Retirement of TacSat-3 Satellite — Press Release

Spacecraft Significantly Exceeded Mission Life ? On-Orbit Operations Lasted Nearly Three Years

Mission Confirms Robustness of ATK’s Quick-to-Launch Spacecraft Bus and Components

ARLINGTON, Va., May 1, 2012 /PRNewswire/ — ATK (NYSE: ATK) announces the conclusion of the Tactical Satellite-3 (TacSat-3) mission. The Air Force announced on April 30th, 2012, that the satellite deorbited into and burned up in the Earth’s atmosphere nearly three years after its May 2009 launch. TacSat-3 was designed for six months of operation, with a goal of one year. Not only did it outlive its design life, it also surpassed its original mission requirements and goals as an experimental spacecraft, and was successfully transitioned to operational status in 2010.

The satellite was removed from operational status and transferred to the Space and Missile Systems Center in February 2012. Once transitioned, ATK provided the Air Force Research Laboratory with updated flight software, which allowed the vehicle to conduct on-orbit collection testing.

TacSat-3′s mission demonstrated the capability to conduct hyperspectral imaging to support the needs of U.S. warfighters.

“TacSat-3 served America well. We were proud to be part of the team that provided reconnaissance data from space to warfighters in the field and to intelligence analysts at home,” said Tom Wilson, vice president and general manager, Space Systems Division, ATK Aerospace Group. “Our innovative bus technology was a key factor in successfully extending the TacSat-3 demonstration to a longer-term operational mission. The mission enabled us to apply and enhance our flexible, modular bus platforms for future small satellite missions that included the ORS-1 spacecraft.”

The spacecraft is a pioneer of the emerging Operationally Responsive Space program, which was designed to meet the growing need of U.S. forces for flexible, affordable and responsive satellite systems.

ATK, as the spacecraft bus prime contractor, provided the complete bus system, which included the onboard command and data handling system, electrical power system, spacecraft bus primary structure, and interfaces to the launch vehicle and payload. Built and designed in just 15 months, ATK’s spacecraft bus met the TacSat-3 program goals of being operationally responsive, low-cost and with expected performance. The spacecraft also featured first-generation modular bus technology designed to provide flexibility for future small satellite missions. As a rapid, affordable experimental mission, the specification did not include a propulsion system to sustain long-term low-Earth orbit.

The TacSat-3 program was managed by the Air Force Space Command with collaboration from the Air Force Research Laboratory Space Vehicles Directorate and the Army Space and Missile Defense Command.

ATK is an aerospace, defense and commercial products company with operations in 22 states, Puerto Rico and internationally. News and information can be found on the Internet at www.atk.com.

U.K. Awards Contract to Raytheon to Replenish Libyan Action Ordnance

The recent NATO led air campaign against Muammaf Gaddafi’s Libya was very successful. Using their advanced aircraft such as Eurofighter Typhoons, Dassault Rafales and others the European nations were able to support ground action by the rebels and support the removal of the North African dictator.

Of course this required the expenditure of quite a bit of air delivered ordnance and now the users are looking at purchasing new equipment to replenish their stocks. One of the contracts awarded to do this was to Raytheon (RTN) by the U.K. Ministry of Defence. This almost $100 million contract is for Paveway IV GPS guided bomb kits.

The Paveway adds a guidance section and fins to a normal bomb usually of around 2,000 lbs. The original Paveway used laser guidance homing in on a reflection of a beam but later ones like the IV utilize GPS guidance where the bomb flies to a coordinate utilizing satellite navigation.

Much of the kit will be made by British companies and Raytheon expects to fulfill the bulk of the order in 7 months.

The U.S. used prodigious amounts of small arms ammunition, 30mm cannon rounds and missiles like the Hellfire in Iraq and Afghanistan. This required substantial contract orders for these which allowed companies like Alliant Techsystems (ATK), who make ammunition and pyrotechnics, a good business. Unfortunately for the industry now that fighting is ending there will be some final orders to replenish stocks as Britain is doing and then there will be much less annual production requirement to support training and the expected minimal use in reduced operations.

ATK Receives a Fourth Contract Option for Continued Production of 30mm PGU Ammunition — Press Release

ATK Receives a Fourth Contract Option for Continued Production of 30mm PGU Ammunition

ATK’s Domestic and International Awards for 30mm Ammunition Exceed $29 Million in FY12

ARLINGTON, Va., Feb. 29, 2012 /PRNewswire/ — ATK (NYSE: ATK) was recently awarded a fourth contract option to produce 30mm PGU-15A/B cartridges for the U.S. Army Contracting Command, Rock Island Contracting Center (RICC), Rock Island, Ill. The order is a part of a multi-year contract originally signed in July 2007. ATK’s worldwide sales of 30mm ammunition in the current fiscal year now exceed $29 million.

ATK’s 30mm PGU-series target practice ammunition is specially designed for training applications. These cartridges, currently in use with the 30mm GAU-8/A Gatling gun on the U.S. Air Force A-10 Warthog close-support aircraft provide cost-effective, ballistic-matched training rounds for improved warfighter performance.

“We are proud to continue our role as the primary provider of PGU-15 ammunition in support of the U. S. Air Force’s A-10 aircraft,” said Dan Olson, Vice President and General Manager, ATK Integrated Weapon Systems. “This round plays an integral role in training A-10 aircrews to develop and maintain essential air-to-ground combat skills. ATK supports this program through the delivery of high quality products, outstanding value and great customer service.”

ATK’s Mesa, Ariz.-based Integrated Weapon Systems division will produce the rounds at its facilities in Radford, Va. and Rocket Center, W. Va. Delivery of the optioned rounds is set to begin this year.

ATK is an aerospace, defense, and commercial products company with operations in 22 states, Puerto Rico, and internationally, and revenues of approximately $4.8 billion. 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.

ATK Selected to Develop Alternative Warhead for Guided Multiple Launch Rocket System — Press Release

ATK Selected to Develop Alternative Warhead for Guided Multiple Launch Rocket System

New GMLRS Warhead Meets U.S. Army Performance Requirements, Improves User Safety, and Eliminates Risk of Unexploded Ordnance

ARLINGTON, Va., Feb. 20, 2012 /PRNewswire/ — ATK (NYSE: ATK) announced that it has been selected by the U.S. Army to develop an alternative warhead for the Guided Multiple Launch Rocket System (GMLRS). ATK was one of three companies competing to proceed into the Engineering and Manufacturing Design and Demonstration (EMDD) phase of the program. ATK will be a subcontractor to GMLRS prime contractor Lockheed Martin.

The GMLRS alternative warhead eliminates the use of submunitions, but performs as a drop-in replacement for the currently-fielded Dual-Purpose Improved Conventional Munition (DPICM) warhead.

“This new warhead offers the advantage of uncompromised performance without leaving unexploded submunitions on the battlefield,” said Dave Wise, Vice President and General Manager of ATK Defense Components. “We look forward to further development and integration of our improved warhead solution for GMLRS. We are also excited to demonstrate that we can adapt our lethality-enhanced ordnance design for other missile, mortar, artillery and air-dropped weapon applications.”

During live-fire testing by the U.S. Army, ATK’s alternative warhead – featuring ATK’s Lethality Enhanced Ordnance (LEO) design – demonstrated that it meets performance and mission requirements, lowers technical risk, and matches current weapon flight characteristics without modifications to the existing GMLRS delivery system. In addition, the design improves user safety by lessening the risk of chain-reaction explosions should the warhead be struck by bullets or fragments, or encounter other hazardous events.

ATK will refine the design to enhance manufacturability, ensuring a low risk transition to low rate initial production. Warhead production work will be performed at ATK’s 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 conventional munitions assemblies, advanced electronic fuzing and integration, solid rocket motor propulsion, and advanced material structures. ATK’s Plymouth, Minn. facility will provide key engineering and program support.

ATK is an aerospace, defense, and commercial products company with operations in 22 states, Puerto Rico, and internationally, and revenues of approximately $4.8 billion. News and information can be found on the Internet at www.atk.com.
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Alliant Techsystems Faces Double Dose of Bad News

24 January – Updated to reflect the loss of the Lake City contract would be a blow to the company instead of “will be”.

Over the last ten years the U.S. military has consumed large amounts of ammunition. This includes not only small arms and support weapons like machine guns and mortars but also larger and more sophisticated weapons such as tank rounds, artillery shells, aerial bombs and guided missiles. Alliant Techsystems (ATK) has become one of the largest suppliers of ammunition and other pyrotechnics to the U.S. military during this time.

Up to last year they had contracts to run two of the largest government owned plants involved in this process — the one in Radford, VA that manufactures nitrocellulose used as the basis for ammunition as well as the one in Lake City, MO which makes small arms ammunition.

Last year the Army awarded the contract for Radford to BAE Systems (BAE:LSE) in the spring. Alliant protested that decision and the Army agreed to revise the competition and conduct another source selection. In October the new contract bids were received and again BAE won. Alliant protested that decision too.

Unfortunately the Government Accountability Office (GAO) announced today that it had denied that protest upholding the award to BAE. Alliant will lose a key contract that it had had since 1995. BAE’s 10 year initial contract also has multiple five year options that could make the contract last until 2036. The value could be well over a billion dollars if all options are exercised and production at Radford remains fairly steady.

Alliant will also face a challenge this year for the Lake City contract as BAE announced it will team with ammunition manufacturer Olin (OLN) to form a team to bid on that one. The Lake City contract could be worth up to $200 million a year to the winner. With the knowledge used for their successful Radford contract proposal BAE and Olin should have a good chance of winning the Lake City one as well.

The loss of these two contracts would be a hard blow to Alliant as they form a decent portion of their revenue each year. They have already seen declines in revenues the last few quarters and this would continue that negative trend. In 2011 their total sales to the U.S. Government, primarily ammunition and explosives, was about $3.3 billion. In their annual report the company stated that they “derived approximately 15% of our total fiscal
sales from the military small-caliber ammunition contract at Lake City”. The loss could be made up if their were other contracts to win or demand for their other products would increase. Unfortunately with the fighting winding down in Afghanistan and budget cuts predicted this might be hard.

Alliant may have recognized that the future might get tough as they moved their headquarters from Minnesota to the Washington D.C. area. In this they followed Northrop Grumman (NOC) which left California. It places them nearer Congress and the Pentagon and will facilitate engagement. This should aid them in keeping work and perhaps gaining new efforts.

All defense contractors no matter what the size are facing the same problems that Alliant is. Cost pressure on the Defense Department will make them look at new providers who may offer the best price meaning contracts will be harder to keep. There will also be less contracts due to the retrenchment from the recent fighting and budget cuts. If the 1990′s when a similar decline in defense spending is a guide then some contractors will have to adjust or face converting to new markets or just merging with other companies.

Mid-tier Defense Contractors Report Poorer Results for Most Recent Quarter

The larger defense contractors all reported their most recent quarterly earnings a few weeks ago. Most maintained their profits or saw an increase although revenue did decline in some cases. They remained mainly positive for the year stating that they would meet or exceed their full year estimates indicating that despite all of the talks and plans of cuts there has not yet been a significant slowdown in U.S. defense spending.

This week two of the mid-tier defense contractors, Kratos (KTOS) and Alliant Techsystems (ATK), also reported for the third quarter and somewhat surprisingly they both saw worst performance with Kratos even suffering a loss.

Kratos Defense & Security Systems is a supplier of IT, safety and security, engineering and technical support for a variety of defense, FMS and civil customers. They saw a loss of about $7 million on sales of $211 million. This was a significant increase in sales from the previous year which saw only $120 million. The primary reason given for the swing to the negative was the completion of the acquisition of Integral Systems. Kratos has over the last few years been fairly aggressive in M&A to expand its business base and customers.

ATK which makes rocket motors, ammunition and explosives primarily saw a decline in revenue of of about $100 million and income fall $17 million. The company is exposed not only to cut backs at the Defense Department but also NASA. ATK is also suffering due to a decline in demand for civil ammunition.

ATK is also waiting on a new competition for one of its major contracts with the U.S. Army. The company had run the Radford, VA plant for the Army but lost a re-compete to BAE Systems (BAE:LSE) which they then protested. The Army decided to have a new contest due to ATK’s protest. That is a $200 million a year contract.

What these results illustrate is that the defense contracting industry is already adjusting to a different market. Results may be uneven for several quarters as this adjustment takes place. The companies that have not diversified or have a wide customer base will be the first to see changes in their revenues and earnings as decisions on individual programs or demand for some supplies begin to dry up. Both Kratos and ATK remain confident for the year but there is starting to be pressure on the sector.

U.S. Navy Continues LRIP of AARGM from ATK

The U.S. Navy awarded ATK (ATK) a contract for the third production lot of Low Rate Initial Production for the Advanced Anti-Radiation Guided Missile (AARGM). The contract is worth a little over $50 million and brings the total of the missiles ordered to 115.

The AARGM is an evolution of the High-Speed Anti-Radiation Missile (HARM) developed in the 1980′s and used in attacks on Libya and in Desert Storm. The AARGM is a joint U.S. and Italian program and is used by EF-18G and Tornado aircraft to attack enemy air defense radars.

The AARGM utilizes a HARM propulsion stack and adds more sophisticated guidance such as a Millimeter Wave (MMW) transceiver, advanced digital Anti-Radiation Homing (ARH) receiver and a tightly coupled GPS/INS. It is able to engage a variety of targets and the aircrew have the ability to select the target in flight or after launch. Like the HARM the AARGM will continue to attack a target even if they shut down their emitter.

The use of these missile began in Vietnam when the U.S. military was confronted by the layered and sophisticated air defenses in the North. The original missile developed was called the Shrike and there were also versions of the Navy’s shorter ranged air defense missile called the STANDARD ARM. These were used along with bombs and rockets to attack Vietnamese fire control and search radars for their Surface to Air Missiles (SAM) and Air Defense Artillery (ADA).

There have been no confirmed reports of the AARGM being used in the recent air strikes on Libya but it would be a good choice of system to attack their air defenses to allow NATO aircraft to conduct ground strikes.

ATK Follows Others and Moves to Washington D.C. Area

Following in the footsteps of other defense contractors Alliant Techsystems (ATK) announced that it would re-locate its corporate headquarters from Minnesota to Washington D.C. Recently Northrop Grumman (NOC), much larger then ATK, did the same transferring its personnel out of California and settling in the Northern Virginia suburbs. These moves are to aid the companies in preparing for future reductions in the U.S. defense budget by allowing better and easier engagement with Congress, the Pentagon and other Federal offices.

ATK will now be near the majority of the larger defense contractors as Lockheed Martin (LMT), General Dynamics (GD) and SAIC (SAIC) are also in the D.C. suburbs. This means that of the biggest defense contractors only Boeing (BA) and Raytheon (RTN) maintain their headquarters somewhere else. Boeing in Chicago and Raytheon in Massachusetts. Certainly the tax and economic situation in their states could easily see them moving at some time in the future to Virginia.

ATK is a mid-size defense contractor who primarily make ammunition, pyrotechnics and rocket engines. They serve a variety of U.S. defense customers as well as NASA. They have done quite well in the last decade due to the U.S. demand for small arms and heavier rounds for machine guns, tanks and artillery often used in Afghanistan and Iraq. Recently ATK has seen some contraction in their business with the last quarter reporting a drop in earnings and revenue.

A few months ago the company lost the contract to run the Army’s Radford plant making explosives to BAE Systems (BAE:LSE). This would have had a further significant effect on future earnings and the company protested. Before the protest could be resolved the Army decided to carry out a new competition which gives ATK hope of staying the incumbent.

The move to DC will not only help the company with its lobbying and engagement with customers but also allow easier business development efforts as being co-located with so many other companies will allow easier discussions of teaming and participating in larger contracts. Somewhat ironically BAE and ATK have teamed together to develop the new defense system for U.S. Navy aircraft called JATAS. Being in Washington may facilitate further contract efforts like this.

If companies feel they need to do this to gain a competitive advantage or even to maintain there current level of business we may see more moves. It used to be that companies did not feel the need to have a large office in D.C. and maintained headquarters across the country. Now it seems that in order to fight for every penny of reduced defense budgets this may be one way to gain an upper hand.

Army Decides to Recompete Radford Contract

In June the U.S. Army announced that it had awarded a contract with BAE Systems (BAE:LSE) to run the U.S. explosives production facility at the Radford, VA Army Ammunition Plant. The losing company, ATK (ATK), who had had contracts to run the facility for several years protested the award. Under normal processes the Government Accountability Office (GAO) which is responsible for deciding these matters would have made a decision no later then September.

The protest though is now not necessary as the Army has decided to recompete the contract which led to the GAO dismissing the protest. After a review by the GAO the Army will change some parts of the Request for Proposals (RFP) and allow bidders to submit new ones. This is good news for ATK as the Radford contract had a value of over $800 million over its ten year duration.

Because of this decision ATK, the incumbent, will continue to operate the plant and be paid by the Army until a new contract is awarded. Both BAE and ATK have indicated they will submit new proposals and there is always a potential for other companies to also try to win the work.

If the U.S. defense budget does decline for any company the key will be keeping their existing contracts and then attempting to win new ones. Having a core of existing work will cushion any lack of new work caused by the reduced opportunities available in the next decade or so as the U.S. reduces its investment in Iraq and Afghanistan as well as new development programs or building up stockpiles of weapons and munitions.

ATK recently had a rough quarter with sales down which led to a drop of about 4% in profits when compared to the similar quarter last year. One areas where revenue was down was sales of ammunition to U.S. allies like Afghanistan. The loss of the Radford contract would have reduced annual revenue $80 million or so or about 2%. A chance to win the work back will only help the company in the future.

More Ammunition for the U.S. Armed Forces

As the U.S. military has remained engaged in Iraq and Afghanistan over the last decade one area where they have spent a lot of funding is on ammunition. The U.S. Army, Marine Corps and other services have utilized large amounts of small arm ammunition as well as fire support weapons such as Apache attack helicopters, mortars, artillery and aircraft weapons. These have ranged from the very mundane to the very sophisticated but the U.S. has utilized a large amount of rounds in the 5.56mm to 30mm variety.

Different companies have benefited from this market. One of the biggest has been ATK (ATK) which has had contracts since 2001 to operate U.S. ammo plants as well as provided larger ammunition and pyrotechnics. Other companies as well have been able to win contracts due to the large demand for this product.

Recent Federal Cartridge Co. was just awarded a contract for training ammunition. As the fighting has continued the U.S. has also increased training making it more realistic and demanding which has required more consumption of ammunition for this purpose. Federal will make a special training round in 5.56mm which is the primary small arms round for the U.S. military. This is made out of polymers and is designed to fragment upon impact minimizing penetration and ricochet. The use of plastic rather then lead means it is better for the environment. The value of this contract is about $46 million.

In another announced contract Olin Corp. (OLN) announced that their Winchester division had received a contract for small arms ammunition. This includes 5.56mm, 7.62mm and .50 caliber rounds primarily used by soldiers and in vehicle mounted support weapons. The value of that contract if all options are exercised is about $300 million. The contract will begin in 2012.

One of the downsides for defense contractors is that as the U.S. withdraws from Iraq and Afghanistan the requirement for large amounts of ammo like this will be reduced. If the military is not involved in active operations they will not require large replacement stocks of consumable items like this. They will rely on what they have on hand to support training and any small operations. The large capacity built up over the last ten years of activity will not be needed.

For companies that have provided this product they will see a reduced market and a fall in orders unless they can find new products or customers to make up for the loss. The U.S. contraction in the defense industry will not just be the end of large acquisition programs but also cuts in soldiers, their support and basic items like 5.56mm training bullets and other ammunition.

ATK Selected as a Major Subcontractor for Intermediate-Range Ballistic Missile Target Rockets – Press Release

ATK Selected as a Major Subcontractor for Intermediate-Range Ballistic Missile Target Rockets

ATK Award has Initial Value of $48 Million with Options to Grow to $90 Million
Award Represents New Application for ATK’s Orion Commercial Rocket Motors

SALT LAKE CITY, July 26, 2011 /PRNewswire/ — ATK (NYSE: ATK) has received a $48 million major subcontractor award from Orbital Sciences Corporation (NYSE: ORB) to provide commercial solid rocket motors for the Missile Defense Agency (MDA) Intermediate Range Ballistic Missile (IRBM) target rocket program. With follow-on options ATK believes the contract has a potential value of up to $90 million. Orbital is the prime contractor for the IRBM program.

ATK’s contract includes an initial award of $48 million for the first eight Orion 50S XLT and 50 XLT vehicles to be delivered by first quarter 2013, with contract options for delivery of 14 additional vehicles over the following two years. ATK’s Orion solid rocket motors will provide first and second stage propulsion for the target rocket.

“This is an entirely new application for our versatile Orion solid rocket motor family,” said Scott Lehr, ATK Aerospace Systems vice president and general manager of Strategic and Commercial Systems. “ATK Orion motors are currently used by MDA and Orbital for missile defense and in a variety of Orbital commercial launch vehicles.”

The Orion motor product line was initiated in 1988 in a joint venture with Orbital for the development of the winged Pegasus® space launch vehicle. Since that time, the motors have been modified for use on a variety of platforms, including Pegasus® XL, Taurus® and Taurus® XL, Minotaur I and IV, Hyper-X. Versions of Orion motors are also used on the Ground-based Midcourse Defense Orbital Boost Vehicle.

“There is a significant cost and reliability benefit gained by selecting solid rocket motors that are already in production for other applications,” said Lehr. Derived from Orbital’s air-launched Pegasus® vehicle, the IRBM target is a multi-stage vehicle that will be air-launched from a standard C-17 cargo aircraft via a parachute extraction system, providing MDA with increased flexibility in testing its Ballistic Missile Defense System (BMDS).

ATK is an aerospace, defense, and commercial products company with operations in 22 states, Puerto Rico, and internationally, and revenues of approximately $4.8 billion. 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.

ATK Receives Contract to Continue Development of Army’s New Tank Round

ATK (ATK) was awarded a contract by the U.S. Army to continue development of a new round for the M1 Abrams tank. This three year contract is for the second phase of Engineering, Manufacturing and Development (EMD). At the end of the EMD the round should enter Low Rate Initial Production (LRIP) and then ultimately Full Rate. The value of the contract is about $77 million.

The new M829E4 120mm cartridge is a kinetic energy round optimized for engaging other tanks at extended ranges. It is designed to defeat modern, advanced armor including explosive reactive designs. Ideally the improved performance of the new ammo will require fewer rounds to be used for each engagement improving the overall survivability of the M1 tank.

ATK won a competition with its design to enter this phase of development although it had carried out the previous EMD contract as well.

The M1 has been deployed to Iraq and Afghanistan and seen a great deal of work providing fire support for U.S. troops as they engaged in irregular warfare. It has been the Army’s primary main battle tank since the 1980′s. Originally equipped with a 105mm gun it was up-gunned to the 120mm early in its service life.

The Army does not build new M1 tanks but relies on a program of modification and re-equipping to keep the M1 abreast of advances in new technology. In the FY12 budget the Army had proposed shutting down the M1 production and retrofit facility run by General Dynamics (GD) to save money and because current inventory objectives have been met. That plan did not meet with much approval from Congress and right now the 2012 budget bills working their way through the House and Senate have money to keep the plant open.

Incremental improvements such as the M829E4 keep the M1 capable of engaging modern threats and providing the necessary capability required on the modern battlefield.

U.S. Army Explosives Production Contract Protested by Alliant Techsystems

Since the Nineties and the downsizing of the U.S. defense establishment due to the end of the Cold War the Department of Defense has leased its ammo production facilities to a variety of defense companies. Then they have awarded contracts for the delivery of small arms, artillery and other ammunition. With the fighting since 9/11 in Iraq and Afghanistan there has been substantial investment in these types of products as the U.S. military has consumed large amounts of small arm ammo and those for supporting weapons such as the 30mm cannon on the AH-64 Apache attack helicopter.

Alliant Techsystems (ATK) has been one of the major suppliers of ammunition and pyrotechnics for the U.S. military over the last decade. The company is a leading manufacturer of small arms rounds as well as larger artillery rounds, missiles and rocket engines. They have been able to operate two of the major production plants owned by the Government for several years. These are the ones in Radford, VA and Independence, MO.

Now the Army has awarded the contract to run the Radford plant to BAE Systems (BAE:LSE). It is estimated the contract will have a value of over $800 million during its ten year duration. Alliant has filed a protest with the Government over the award. Normally the Government Accountability Office (GAO) will resolve the protest within 100 days. The contract does not start until September so Alliant will continue running the plant until then pending the review of the protest.

If the GAO finds that there were irregularities in the award to BAE they may order a new competition, ask the Army to review how their source selection was conducted or even give the contract to Alliant. Most protests are denied and Alliant will have to hope that the Army did not carry out their source selection properly in order to get a ruling in their favor.

As the U.S. defense budget begins to decline and troops return from Iraq and Afghanistan demands for certain products like ammo and explosives will also be reduced. This means that locking in contracts now at the beginning of this process is very important. Alliant relies on this work for a large portion of their revenue and earnings. Losing the contracts will have an impact on their long term prospects and force them to try to expand their other product lines or look for new markets.

Photo from Yarden Sach’s flickr photostream.

Is There a Market in Afghanistan and Iraq for U.S. Defense Contractors?

Now that the U.S. is beginning to seriously drawdown troops from Iraq and Afghanistan and scale back their missions the focus will move to building up those countries internal security and armed forces. Much of their training and equipment so far has been provided through the U.S. either by direct transfer, sales or funding. The removal of U.S. forces will accelerate these kinds of deals. Iraq, unlike Afghanistan, has its own funding available through its oil production which gives it a little more leeway in deciding what to buy.

The U.S. is committed right now to withdraw the last of its 47,000 troops from Iraq in this year. The two governments are in discussion of whether to extend the presence but no decision has been made yet. The British have already removed all of their forces. The end of that mission would mean security of the entire country of Iraq would belong to its Army and Ministry of Interior forces.

The U.S. has provided large amounts of equipment and training to Iraq. Much of this has been of Russian design although produced all over the world. Alliant Techsystems (ATK) for instance has been given contracts to provide “non-standard” ammunition. The company is the largest producer of ammunition in the U.S. and makes different types of bullets and shells for the U.S. military. “Non-standard” in this case means in the former Soviet Union sizes for use by Iraq and Afghan forces that tend to be equipped with AK-47 and Russian support weapons. ATK will use sources in Eastern Europe to provide them.

Afghanistan has also recently signed contracts with two U.S. companies for training helicopters and aircraft. MD Helicopters received a $186 million contract to build six light helicopters to train new Afghan rotary wing pilots. Initially six aircraft will be purchased but up to fifty-four could be. Cessna Aircraft, part of Textron (TXT), just won a fixed wing training contract worth about $88 million. This will be for six Cessna 182T and 26 208B aircraft for basic training.

One of the largest current contracts is through the U.S. State Department with DynCorp, privately held by Cerberus Capital. This is for training support to the Afghan military and police. The contract was controversial in that it was protested by then Blackwater who felt the billion dollar deal should have been awarded to them. This provides an example of the amount of money that is out there for these kinds of contracts.

The next step will be to determine what future opportunities are there. The Iraqi military will be buying much more heavy equipment then a nation like Afghanistan. It already has purchased tanks, armored vehicles, aircraft and helicopters. Many of these while not American made are bought through the U.S. military or with financial aid. Further contracts like this may be expected. For example last week the U.S. Army negotiated a contract with Russian company, Mil, to provide 21 Mi-17 helicopters to Afghanistan at a cost of up to $300 million. U.S. companies while they won’t be supplying hardware will be able to provide training, maintenance and program support to both the U.S. and the Iraq and Afghan users of these kinds of items.

One issue that hangs over all of this is the need for U.S. contractors to gain more overseas businesses. The U.S. defense budget will decline in the near future. In order to maintain the current level of sales and earnings more business will be needed from foreign sources. The Iraq and Afghanistan markets should favor the U.S. but due to the needs of those countries, their familiarity with Russian types of weapons, and the low level of technology they are buying it might be difficult. Certainly in a few years Iraq might be looking at American fighters such as the F-16 or F/A-18 but not in the immediate future. Technology transfer rules also affect the ability of these types of sales.

U.S. contractors have already made a great deal of money supporting the fighting in Iraq and Afghanistan. Much of this has been through logistics and training support rather then providing hardware directly to these two new governments. There may be opportunities in the future for larger, more complex contracts but it may take several years as the two militaries are built up. In the short term though it will be contracts for supply, maintenance and training where the market will be. Much of the money for those efforts will still be provided by the U.S. taxpayer either directly or through foreign aid. The time when Afghanistan and Iraq place large orders with their own tax money is still a ways off.

Photo from Photo from Christian Brigg’s Flickr photostream.

Article first published as Is There a Future Market in Afghanistan and Iraq for U.S. Defense Contractors? on Technorati.

U.S. Army Continues Development of New 25mm Weapon for Soldiers

The U.S. Army relies on the M4/M16 family of assault rifles using the standard NATO 5.56mm round to provide the personnel weapons for its soldiers. These have seen some evolution since the fighting in Iraq and Afghanistan started with the addition of improved sights, reliability and upgrades to ammunition but they remain basically the same weapon that was introduced in Vietnam almost fifty years ago.

Starting in the Nineties a development program for a new rifle was begun that led to the XM8. This went through several years of testing and development before being canceled in 2005. Since then the Army has looked at beginning again while making upgrades to the M4. One part of the XM8 program did continue though which was a 25mm version which has seen limited testing in Afghanistan as the XM25.

The XM25 fires an air-burst round that may be programmed prior to firing so that it detonates at a specific range from the shooter. This allows engagement of foes that are behind cover as the round attacks them from above. In the original XM8 program the 25mm launcher would have been mounted under the barrel but due to weight issues a specific version was built and the plan was to equip one soldier in each squad to provide fire support.

In the last year a limited number of XM25 were issued to troops in Afghanistan and tested. The reported results were very encouraging and the Army has decided to continue work on the system. ATK (ATK) was awarded a contract to conduct Engineering, Manufacturing and Development (EMD) work on the weapon. The thirty month contract has a value of just under $70 million.

The XM25 provides long range suppressive fire and has proven accurate and effective so far in combat. The decision to move into EMD shows that the Army is interested in moving the weapon into large scale production. When combined with other systems such as the Individual Gunshot Detector (IGD) developed by QinetiQ it allows engagement of the enemy at ranges much further then standard infantry weapons.

Photo from The U.S. Army’s flickr photostream.

ATK to Make Special Rounds for Special Forces

The bullet being fired from a gun has dominated the battlefield since before the Civil War. The basic concept remains the same but there have been significant upgrades to accuracy, rate of fire and damage for the infantry small arm. Even though general weapons technology has remained the same since the end of World War II with the introduction of the modern assault rifle with its high rate of fire and smaller caliber then the standard single shot infantry rifle that does not mean there cannot continue to be incremental improvements to such technology.

Recently the U.S. Army went forward with its “green” bullet. This is a round that contains no lead and has less of an environmental footprint then older ammunition. It also offers performance improvements over the traditional rifle bullet used by the Americans and many of their allies.

Now the Navy has contracted with Alliant Techsystems (ATK), the company that manufactures much of the U.S. military ammunition and pyrotechnics, to produce a new bullet for Special Operations and Forces. The almost $50 million contract will see the manufacture of both 5.56mm and 7.62mm rounds for use in the Special Operations Combat Assault Rifle System (SCAR).

Reportedly the new bullet will have better accuracy, penetration and generate less of a muzzle flash. The last ten years of fighting in Iraq and Afghanistan have seen the need for some changes to U.S. weapons due to the threat and conditions which have included close combat as well as high altitudes requiring different weapons, tactics and procedures. The benefits of less flash especially when fighting at night is obvious. If you are engaging dug in enemies or those in houses more penetration will also be a help.

The whole development of the SCAR made by FNUSA was to meet a requirement by the Special Operations Command (US SOCOM) due to their belief they needed something better then the standard M4 and M16 assault rifles used by the U.S. military. The SCAR is customizable in length and other attachments and comes in multiple barrel sizes.

If the fighting continues in Afghanistan and other parts of the world further improvements such as this ammo will continue until there occurs a whole paradigm shift in small arms to perhaps energy based weapons although that is not expected anytime soon.

Photo from The U.S. Army’s flickr photostream.

ViviSat Launched — Press Release

ViviSat Launched

New Venture Will Provide Satellite Life Extension Services

PR Newswire

DULLES, Va., Jan. 13, 2011

DULLES, Va., Jan. 13, 2011 /PRNewswire/ — U.S. Space LLC, a U.S.-based creator of dedicated space solutions for government and commercial clients, and ATK (NYSE: ATK), an aerospace, defense, and commercial products company, today announced the creation of ViviSat, a new satellite life extension venture. ViviSat provides geosynchronous satellite operators with flexible, scalable, capital-efficient, and low-risk in-orbit mission extension and protection services that can add several years to the revenue-producing life of a satellite.

ViviSat’s Mission Extension Vehicle (MEV) is designed to dock with the orbiting satellite, securely latch on to it, and serve as a back-up propulsion system. This enables a mission extension for satellites which have run out of maneuvering fuel yet still have plenty of electrical power to operate their payloads. ViviSat services include rendezvous and docking without interruption of satellite operation, long-term station-keeping and attitude control, relocation to different orbits or orbital slots, de-orbiting, and rescue and re-orbiting of satellites stranded in incorrect orbital slots.

Edward D. Horowitz, Chairman of ViviSat and Co-founder of U.S. Space, said, “ViviSat is a new company dedicated to providing satellite operators, the U.S. Government and its coalition government partners with in-orbit mission extension and protection services. ViviSat’s service model delivers a game-changing advance in financial efficiency, operating flexibility and risk mitigation. ViviSat provides satellite operators around the world solutions designed to improve performance, return and cash flow from existing space assets and activate new markets and new opportunities.” Ed Horowitz’s bio

Tom Wilson, Board Member of ViviSat and Vice President and General Manager of ATK Spacecraft Systems and Services, said, “In-orbit mission extension and operations protection are a brand new market and ViviSat will enable operators to extend satellite mission duration, drive asset value, and protect their franchises in ways no other provider can offer. ATK is an industry leader in space systems technology, subsystems, and components for satellites of all classes. We have a proven record of performance with a legacy of on-orbit success developed from numerous prior missions –Earth Observing-1, THEMIS, and TacSat-3. The ViviSat venture matches our overall objective to deliver innovative solutions based on customer needs.” Tom Wilson’s bio

Horowitz and Wilson outlined the roles of the two companies in the ViviSat venture. U.S. Space is the operating entity, with responsibility for mission management, marketing, legal, and finance. ATK is the mission prime contractor, with responsibility for manufacture and delivery of the spacecraft, launch and ground segments. Horowitz and Wilson also announced the ViviSat senior team:

* Major General, USAF (Ret.) Craig P. Weston is Chief Executive Officer of ViviSat. Craig Weston’s bio
* Bryan McGuirk is Chief Operating Officer of ViviSat. Bryan McGuirk’s bio
* Mark Piegza is Chief Financial Officer of ViviSat. Mark Piegza’s bio
* Dr. Dany Harel is Chief Technical Officer of ViviSat. Dany Harel’s bio

Weston said, “ViviSat has the space dream team – a deeply experienced and accomplished management backed by creative and customer-oriented investors. We look forward to growing this new mission area for the benefit of commercial and government operators.”

Further information about ViviSat can be found at the company’s website, http://www.vivisat.com

SOURCE U.S. Space LLC; ATK Spacecraft Systems and Services
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ATK Awarded $4.5 Million Contract for U.S. Air Force High-Speed Anti-Radiation Missile (HARM) Control Section Modification Program — Press Release

ATK Awarded $4.5 Million Contract for U.S. Air Force High-Speed Anti-Radiation Missile (HARM) Control Section Modification Program

ATK to Begin Limited Production Phase to Modify High-Speed Anti-Radiation Missile (AGM-88C) Control Sections
Work on this program will be performed at ATK facilities in Woodland Hills, CA and Rocket Center, West VA

PR Newswire

MINNEAPOLIS, Dec. 14, 2010

MINNEAPOLIS, Dec. 14, 2010 /PRNewswire/ — ATK (NYSE: ATK) announced that it has been awarded a $4.5-million contract from the U.S. Air Force for the limited production phase of the High-Speed Anti-Radiation Missile (HARM) Control Section Modification (HCSM) program.

The HCSM program adds geo-specific targeting capability to the legacy U.S. Air Force HARM (AGM-88C) control section. With the addition of an inertial measurement unit, a GPS receiver, modified guidance software and platform provided coordinates, the Air Force’s HARM missiles will have the capability to attack targets based on their geographic location and avoid zones of exclusion.

ATK is one of two companies awarded a limited production phase contract. In this 18-month phase, the Air Force will evaluate overall compliance with the HCSM program’s technical objectives and the companies’ ability to reliably produce modification kits at the lowest cost. The evaluation will include both ground and flight tests. Following the technical evaluation of both companies, the Air Force plans to award a single full-rate production contract.

ATK’s HCSM solution leverages flight-proven and in-production control section hardware from AGM-88E Advanced Anti-Radiation Guided Missile program. ATK is currently delivering production AGM-88E missiles for the United States Navy and the Italian Air Force.

“We are very pleased that ATK has been selected to participate in the limited production phase of the HCSM program,” said Bill Kasting, Vice President and General Manager of ATK Defense Electronics Systems. “We have acquired a great deal of experience in the lab, in flight testing and in limited rate production with fused anti-radiation homing and navigation solutions for missiles. We are confident that we can provide a competitively priced solution that will meet the Air Force’s mission requirements and also provide joint commonality and cost savings to the services.”

ATK is a premier aerospace and defense company with operations in 24 states, Puerto Rico, and internationally, and revenues of approximately $4.8 billion. News and information can be found on the Internet at www.atk.com.

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End of Fighting and Budget Cuts Mean Hard Times Ahead for Military Depots

This weekend the Obama Administration made clear that it will start winding down the U.S. and its Allies commitment to Afghanistan next year with a goal of total withdrawal by 2014. Along with the planned movement of most U.S. troops from Iraq over the next few years combat operations by U.S forces will gradually decline. This means that the defense budget will reconfigure itself to buy less of the things being consumed in daily combat to investing in new equipment and rebuilding stocks.

One area that may see significant decline is the production of ammunition. The U.S. has increased greatly its sources for small arm rounds as well as those used by key systems such as Apache attack helicopters and mortars which are providing the majority of fire support in Afghanistan. This has mainly been done by using the Army depots as a traditional source but by leasing out space and equipment to private companies. ATK for example operates facilities at different depots to make small arms ammunition and pyrotechnics.

The Services have also tried to get private companies to use the resources of the depots including their workforce for other means. This contracting out has helped pay for support services and investment in the physical plant of the depots aiding them in their basic mission of supporting the military.

Blue Grass Army Depot in Kentucky for example has been “attempting to market itself to defense contractors and non-defense manufacturers to bring in more funds.” The depot hopes that any partnership it may establish with a defense contractor or other company to help it stay in business. Right now the depot primarily manufactures parts for 81 mm mortar rounds. It also is about to start up a chemical demilitarization and destruction operation to remove its stocks of chemical weapons from the cold war.

The problem that may face Blue Grass and the other depots is that once fighting ends the Army will rebuild its stocks of 81 mm mortar rounds but then only replace those used in training or reaching their service life. Most of the older rounds will have been expended already as traditionally the military uses up those first in combat.

Like the situation where the U.S. Army completed buys of the ubiquitous HUMVEE a year earlier then planned due to combat losses not being what was predicted and the total quantity needed had been reached the depots making ammunition could see the same happening. This means their work and workforce will be reduced and as in the last major downturn the depots closed or realigned.

The ultimate effect of cuts in the defense budget will be jobs lost across the country. Ending a program without starting up a replacement or new one means those jobs won’t be replaced even in another location. The economic affect of that will be lasting.

Photo from The U.S. Army Flickr photostream.

Continued Small Arms Purchases by U.S. from ATK

Since 9/11 the U.S. military has been heavily engaged in Afghanistan and Iraq. They have also helped those two countries rebuild their armed forces. One of the main items that has been acquired to support these operations is small arms ammunition. Not only has the U.S. and its Allies gone through a great deal of it in the standard 5.56, 7.62 and 12.7 but they have needed Soviet sized rounds for the Iraqi and Afghan military.

ATK (ATK) has been one of the major beneficiaries of this demand. ATK from its own facilities and ones it operates for the U.S. Defense Department has supplied several billion rounds of ammunition this decade. They have also been contracted to purchase Soviet sized rounds from producers in Europe and Asia for use in Iraq and Afghanistan. This production has required investment in production capability while also developing improved ammunition for the U.S.

The latest contract the company has received were only announced this week and are worth over $200 million. These orders include several hundred million of the new M855 cartridge used in the M4 and the M16 rifles. These are standard equipment for U.S. Soldiers and Marines.

The M855 is improved to provide better performance including penetration of hard targets. It is also considered more “green” as it does not have a lead core like most other bullets. The M855 was developed partly due to complaints about the M4 rifle’s short barrel and its effect on performance in combat situations.

Photo from U.S. Air Force via gopal1035 flickr photostream.

New Joint Missile Program Entering Flyoff for Raytheon and Lockheed Martin

27 July – Updated to discuss the reasons for the JCM contract cancellation and to include more information on the Lockheed Martin proposal.

The Navy, Marine Corps and Army are attempting to develop a new air-to-surface missile that will replace the current Hellfire, TOW and Maverick systems. The Joint Air-to-Ground Missile (JAGM) will be launched from a variety of aerial platforms to attack vehicles and fixed targets.

The Army is managing the joint project and the next step in the acquisition process is a fly off this Summer at White Sands Missile Range (WSMR). Raytheon (RTN) and its partners Boeing (BA) and Alliant Techsystems (ATK) are proposing a missile with a new uncooled infrared sensor setting it apart from the Lockheed Martin (LM) competition which is using an advanced cooled sensor.

Lockheed had previously won the JCM development contract in a competition that included Raytheon and Boeing as separate competitors. That contract was canceled in 2007 by a Presidential Budget Memorandum (PDM). At that time the program was on cost, schedule and meeting performance requirements. The need for the new missile remained valid and two twenty-seven month development contracts were awarded in 2008 to the Raytheon-Boeing team and Lockheed Martin.

The Hellfire has had a great deal of use since 9/11 in Iraq and Afghanistan especially launched from AH-64 Apache helicopters and Predator and other UAV systems. The JAGM will be fired from these platforms as well as the F/A-18, SH-60 and the AH-1 Cobra used by the Navy and Marine Corps. Because much of the targets for the Hellfire have not been tanks as it was originally designed to counter but personnel and buildings special warheads have been developed for those missions. The JAGM will have a warhead capable of being able to attack a variety of targets without being changed.

The JAGM is one of the major contracts that will be awarded in the next few years as the military will need to buy thousands of the missile once production starts. The Apache and F/A-18 are fairly ubiquitous platforms in use by the U.S. and major Allies and the market to replace the Hellfire, TOW and Maverick is quite large. The winner of the contest should see a good deal of business from this program that might offset some of the potential cuts coming in the U.S. defense budget as fighting winds down and fiscal reality hits.

The use of a flyoff where each team demonstrates a fairly mature prototype used to be common in the past. The size of the defense budget in the Nineties and the decline in the U.S. industrial base meant the practice had become rarer. One of the recent reforms in defense acquisition is to try and have more competitions like this and it worked well with the new MRAP-ATV program for example.

Photo from mashleymorgan’s flickr photostream.

ATK Delivers First Production Advanced Anti-Radiation Guided Missiles (AARGM) to the United States Navy — Press Release

ATK Delivers First Production Advanced Anti-Radiation Guided Missiles (AARGM) to the United States Navy

AARGM Provides Warfighter Innovative Capability to Defeat Multiple Targets Sets Work is Being Performed at ATK’s Rocket Center, WV and Woodland Hills, CA, Facilities

MINNEAPOLIS, July 14 /PRNewswire-FirstCall/ — Alliant Techsystems (NYSE: ATK) announced today that the United States Navy has accepted the initial deliveries of AGM-88E Advanced Anti-Radiation Guided Missile (AARGM) production missiles. The missiles were delivered to the U.S. Navy by ATK at its Allegany Ballistics Laboratory (ABL) facility located in Rocket Center, WV. The AARGM team has previously completed both the Developmental and Operational Assessment test phases of the program.

“We are very proud of the hard work and dedicated efforts of the AARGM joint government/industry team in achieving this milestone. Our full focus is on execution of the production program so that this innovative, new capability can be provided to the warfighter,” said Bill Kasting, Vice President and General Manager of ATK Defense Electronics Systems.

AARGM’s precision capabilities allow for the destruction of modern enemy air defense systems, time-critical targets, and other mobile targets. AARGM’s unique combat capability significantly increases the probability of successful engagements, minimizes the chance of collateral damage and eliminates the need to fly continuous suppression sorties throughout the duration of a conflict.

AARGM – an upgrade and complement to the U.S. Navy AGM-88 HARM system – is a U.S. and Italian international cooperative program with the U.S. Navy as the executive agent. AARGM provides the warfighter with a supersonic, air-launched tactical missile that will be integrated on the FA-18C/D, FA-18E/F, EA-18G and Tornado ECR aircraft. The missile is also designed for compatibility with the F-35 Lightning II, EA-6B Prowler and U.S. and Allied F-16 Falcon aircraft.

Its advanced multi-sensor system, including a Millimeter Wave (MMW) terminal seeker, advanced digital Anti-Radiation Homing (ARH) receiver and a GPS/INS coupled with a Digital Electronic Terrain Data (DTED), is capable of rapidly engaging traditional and advanced enemy air defense targets as well as non-radar time-sensitive strike targets. The AARGM MMW seeker can operate in concert with the ARH to counter RF shutdown tactics, or in a stand-alone mode to guide to non-emitting time sensitive targets. AARGM is a network-enabled weapon that will directly receive tactical intelligence information via an embedded receiver and transmits real-time Weapon Impact Assessment (WIA) reports prior to impact.

ATK is a premier aerospace and defense company with more than 18,000 employees in 24 states, Puerto Rico and internationally, and revenues of approximately $4.8 billion. News and information can be found on the Internet at www.atk.com.

Source: ATK

Alliant Techsystems To Provide Composite Structures For F-35 Joint Strike Fighter

Despite the cost increases and the schedule delays Lockheed Martin (LMT) continues to work on building, testing and getting ready to deliver F-35 Joint Strike Fighter aircraft to the U.S. military and Allies. The recent defense budget revealed that estimated costs for the advanced aircraft have almost doubled. As part of the construction Lockheed buys assemblies and parts from a number of U.S. companies.

Yesterday, Alliant Techsystems (ATK) announced that they had received a contract worth about $250 million to provide composite fuselage, engine and wing pieces for the JSF. The contract illustrates the diversified industrial base required to build the sophisticated aircraft.

ATK Plays Key Roles in Successful Launch of Wideband Global SATCOM (WGS-3) — Press Release

ATK Plays Key Roles in Successful Launch of Wideband Global SATCOM (WGS-3)

ATK Supports First Launch of Delta IV Medium-Plus Vehicle Featuring Four Motors ATK’s Propulsion, Composite and Satellite Technologies Contribute to WGS Satellite Mission

MINNEAPOLIS, Dec. 7 /PRNewswire-FirstCall/ — Alliant Techsystems’ (NYSE: ATK) composite, propulsion and spacecraft technologies supported the successful launch of a United Launch Alliance Delta IV rocket from Space Launch Complex 37 at Cape Canaveral Air Force Station, Fla., carrying the Wideband Global SATCOM (WGS-3) for the U.S. Air Force.

This was the first time the Delta IV medium-plus rocket featured four ATK 60-inch-diameter Graphite Epoxy Motors (GEM). The composite cases for the GEM motors were fabricated at the ATK Clearfield, Utah facility. The 70-foot-long motors were mounted in pairs on opposing sides of the rocket, with one fixed and one vectorable nozzle per side, and provided the auxiliary lift-off capability for the Delta IV medium plus configuration rocket. The GEM 60s burned for 90 seconds and provided 1,120,000 pounds of thrust to deliver the WGS satellite to its determined orbit.

ATK also designed and produced the nozzle for the Delta IV’s RS-68 engine. The Pratt & Whitney Rocketdyne-built RS-68 is the largest hydrogen-fueled engine in the world. ATK also designed and produced the nozzle’s thermal protection material, which is capable of shielding the nozzle from the extreme heat of launch when external temperatures can exceed 4,000 degrees F. The nozzle is manufactured at ATK’s Promontory, Utah facility.

ATK supplied 10 key composite structures for the Delta IV medium plus launch vehicle: the interstage that provides the interface between the Common Booster Core (CBC) and the cryogenic second stage, a centerbody that integrates the liquid oxygen (LO2) and liquid hydrogen (LH2) tanks, a thermal shield that protects the RS-68 engine during ignition and flight, one LO2 skirt, and one aeroskirt. The payload is encapsulated by ATK’s 5-meter diameter composite payload fairing, along with required hardware for payload integration including a nose cap, x-panels, payload attach fitting, and payload attach fitting diaphragm.

The composite structures are five meters in diameter and range from one to more than 15 meters in length. They are produced using hand layup, machining and inspection techniques at the company’s manufacturing facility in Iuka, Miss.

ATK provided key subsystem and component technologies for the successful launch of the WGS-3 satellite. ATK’s Commerce California facility provided the propellant tank for the Delta IV upper stage roll control system. Additionally, ATK Space Structures based in San Diego manufactured the payload module and the solar array substrates panels.

WGS-3, the third satellite of the series, will provide high-capacity X-band and Ka-band communications support to the U.S. and allied air forces in military operations across the world. WGS-1 has been in operation over the Pacific since April 2008, and WGS-2 has been operating over the Middle East since August 2009.

ATK is a premier aerospace and defense company with more than 18,000 employees in 22 states, Puerto Rico and internationally, and revenues of approximately $4.8 billion. News and information can be found on the Internet at www.atk.com.

Media Contact: Investor Contact:

Bryce Hallowell Jeff Huebschen
Phone: 952-351-3087 Phone: 952-351-2929
E-mail: [email protected] E-mail: [email protected]

Source: ATK

CONTACT: Bryce Hallowell, +1-952-351-3087, [email protected], or
Investors, Jeff Huebschen, +1-952-351-2929, [email protected], both of
ATK

Web Site: http://www.atk.com/

ATK and Elbit Systems Conduct Successful Flight Test of GATR From OH-58D Kiowa Warrior Helicopter — Press Release

ATK and Elbit Systems Conduct Successful Flight Test of GATR From OH-58D Kiowa Warrior Helicopter

RESULTS DEMONSTRATE LOW-COST, RAPID DEVELOPMENT OF AFFORDABLE PRECISION

MINNEAPOLIS, Dec. 1 /PRNewswire-FirstCall/ — Alliant Techsystems (NYSE: ATK) and Elbit Systems Ltd. (NASDAQ:ESLT) have successfully conducted flight tests of the Guided Advanced Tactical Rocket (GATR) from a U.S. Army rotary-wing helicopter: the OH-58D Kiowa Warrior.

The tests took place during a recent U.S. Army Aviation Applied Technology Directorate (AATD) demonstration, conducted at Eglin Air Force Base in Florida. GATR was fired from an OH-58D Kiowa Warrior helicopter using “lock-on before launch” to engage targets at ranges exceeding five kilometers. The multiple laser-designated guided test flights, launched from a standard 2.75-inch launcher, resulted in direct impacts on all targets. The pilot of the OH-58D was able to confirm lock-on of the GATR prior to launch.

“ATK and teammate Elbit Systems have rapidly developed and deployed a low-cost precision system to meet our customers’ needs,” said Mark DeYoung, ATK Senior Vice President and President Armament Systems.

Originally announced in July 2008, GATR benefits from a robust design, which combines combat-proven performance, a minimum smoke signature and the reliability of an ATK-produced propulsion system, similar to a system employed on millions of rockets produced for the United States Army. GATR contains a guidance and control system built with the experience of Elbit Systems’ heritage in high-performance laser seekers for the United States and international customers. It employs advanced acquisition, tracking and guidance algorithms to achieve one-meter accuracy against stationary and moving targets. In its tactical configuration, GATR will incorporate an Insensitive Munitions (IM) rocket motor and a family of IM warheads to include blast/fragmentation and penetration. GATR minimizes collateral damage, while providing stand-off deployment against a wide array of target sets.

GATR supports lock-on before or after launch as well as autonomous or remote laser designation. The system can be deployed against targets at ranges exceeding 8 kilometers from fixed and rotary-wing aircraft. It is compatible with existing 2.75″/70mm launcher hardware. GATR will be particularly effective in urban areas or against targets where a low collateral damage solution is required. The GATR system fills the gap between larger, more expensive guided missiles and the current family of unguided rockets.

About ATK

ATK is a premier aerospace and defense company with more than 18,000 employees in 22 states, Puerto Rico and internationally, and revenues in excess of $4.8 billion. News and information can be found on the Internet at www.atk.com.

About Elbit Systems

Elbit Systems Ltd. is an international defense electronics company engaged in a wide range of defense-related programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance (“C4ISR”), unmanned air vehicle (UAV) systems, advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios. The Company also focuses on the upgrading of existing military platforms and developing new technologies for defense, homeland security and commercial aviation applications. For additional information, visit www.elbitsystems.com.

ATK

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: the challenges of developing advanced, precision-fire weapons; 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.

Elbit Systems

This press release contains forwardlooking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively the Company), to the extent such statements do not relate to historical or current fact. Forward Looking Statements are based on management’s expectations, estimates, projections and assumptions. Forwardlooking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results, performance and trends may differ materially from these forwardlooking statements due to a variety of factors, including, without limitation: scope and length of customer contracts; governmental regulations and approvals; changes in governmental budgeting priorities; general market, political and economic conditions in the countries in which the Company operates or sells, including Israel and the United States among others; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; and the outcome of legal and/or regulatory proceedings. The factors listed above are not all-inclusive, and further information is contained in Elbit Systems Ltd.’s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission. All forwardlooking statements speak only as of the date of this release. The Company does not undertake to update its forward-looking statements.

Source: ATK

CONTACT: Elbit Systems, Dalia Rosen, Corp. Communications,
+972-4-8316784, fax, +972-4-8315666, [email protected]; or ATK,
Amanda Covington, Communications, +1-801-779-4625, [email protected],
or Jeff Huebschen, Investor Relations, +1-952-351-2929,
[email protected]

Web Site: http://www.atk.com/

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