High Court grants injunction against BAE settlement — Press Release
Filed under: BAE Systems, Business Line, Companies, Countries, England, Events, Press Releases
High Court grants injunction against BAE settlement
The High Court has granted an injunction prohibiting the Director of the Serious Fraud Office (SFO) from taking any further steps in its plea bargain settlement with BAE Systems.
The injunction is in force until the Court has decided whether or not to give permission to Campaign Against Arms Trade (CAAT) and The Corner
House to apply for a judicial review of the settlement. It will make this decision by 20 March 2010.
Lawyers acting for The Corner House and CAAT formally lodged papers seeking judicial review permission on Friday 26 February 2010, together
with a request for the injunction.
LEGAL DOCUMENTS
Interim Injunction Order:
http://www.thecornerhouse.org.uk/pdf/document/InterimInjunctionOrder.pdf
Injuction Application:
http://www.thecornerhouse.org.uk/pdf/document/InjunctAppln.pdf
Judicial Review Application: Facts and Grounds:
http://www.thecornerhouse.org.uk/pdf/document/FactsAndGrounds.pdf
For further information, background and earlier press releases, go to:
http://www.thecornerhouse.org.uk
CVF Construction begins at Royal Navy’s new carriers’ Portsmouth base
Construction begins at Navy's new carriers' Portsmouth baseFebruary 26, 2010
Steel-cutting on a section of the hull of the first of the Royal Navy's two new aircraft carriers began at Portsmouth yesterday, Thursday 25 February 2010.
Portsmouth, which will be the future home of both Queen Elizabeth Class carriers, became the fifth UK shipyard to be involved in construction on the programme.
Defence Secretary Bob Ainsworth pushed the button to start the laser cutter. He said:
"Here in Portsmouth work is just beginning but across the country in Devon, Newcastle, Glasgow and Rosyth work is already under way.
"In all, six shipyards across the UK will be involved in the manufacture of the ships' hulls, supporting up to 8,000 jobs in the construction and up to another 3,000 throughout the supply chain.
"The progress already being made to deliver these assets, which will be a cornerstone of future defence policy, is a testament to the skill and professionalism of UK industry."
The steel-cutting which began yesterday is for the first of three blocks that BAE Systems Surface Ships will build for the ships in Portsmouth.
At 70m long and 40m wide, the block will use 6,000 tonnes of steel. It will house space for machinery and supplies as well as switchboards and some accommodation.
"The progress already being made to deliver these assets, which will be a cornerstone of future defence policy, is a testament to the skill and professionalism of UK industry."
Defence Secretary Bob Ainsworth
BAE Systems' role in the carrier build programme at Portsmouth is in the order of £800m, forming a substantial element of the workload at the naval base, where the company employs over 3,000 people, including around 200 apprentices.
First Sea Lord, Admiral Sir Mark Stanhope, said:
"The two ships of the Queen Elizabeth Class will be the largest and most powerful warships ever built for the UK, each equalling four acres [16,000 square metres] from which to project air power anywhere in the world.
"With eighty per cent of the world's land mass within 500 miles [800km] of the ocean, the carriers will provide unparalleled access and flexibility. They are vital joint assets for the future of defence."
Managing Director of BAE Systems Surface Ships, Alan Johnston, said:
"This is a very proud day for our workforce here in Portsmouth and comes on the back of our work on the Clyde, where another large part of the carrier's hull is already taking shape.
"The design and build of ships of this magnitude is a massive engineering feat and a real testament to skills harnessed in our industry across the UK.
"We will continue to work closely with our partners in the Aircraft Carrier Alliance and to invest in the skills of our employees and our facilities not only to deliver the Royal Navy's future flagships, but also to secure the long-term future of the UK's warship building industry."
Construction of the ships is progressing, and a national project that draws on the skills of shipyards throughout the UK is underway.
This includes the shipyards at Glasgow, Rosyth, Newcastle, Devon and Birkenhead, as well as around a further 100 contracts throughout the supply chain.
Some of the sections of the first ship's flight deck, called sponsons, have already been delivered to Rosyth, where the ships will be assembled.
In spring, the first of the blocks of hull are also due to leave for the Scottish shipyard from Appledore in Devon. Many of the key components for the ships, such as the diesel generators and the turbines, have also already been manufactured.
Six shipyards will together construct the nine blocks that make up the hull:
BAE Systems, Glasgow
Babcock, Appledore
Babcock, Rosyth
A&P, Newcastle
BAE Systems, Portsmouth
Cammell Laird, Birkenhead (due to begin summer 2010).
The innovative Aircraft Carrier Alliance is a single integrated team in which the MOD acts as both partner and client. Formed from the MOD, BAE Systems, Babcock and Thales UK, it is responsible for delivering the Queen Elizabeth Class ships on time and to cost.
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Babcock International Group PLC (London: BAB), BAE Systems (London:BA), Future Aircraft Carrier (CVF), Royal Navy
Legal challenge launched against SFO-BAE settlement — Press Release
Filed under: BAE Systems, Business Line, Countries, England, Events, Press Releases, production program
Legal challenge launched against SFO-BAE settlement
BAE to be called to account through legal challenge
Lawyers acting on behalf of Campaign Against Arms Trade (CAAT) and The
Corner House have today issued a letter to the Director of the Serious
Fraud Office (SFO) laying out their intention to request a judicial review
of the 5 February 2010 decision by the SFO to enter a plea agreement with
BAE.
The basis for the legal challenge is that the SFO failed properly to apply
prosecution guidance (including its own guidance). In particular, the plea
agreement reached fails to reflect the seriousness and extent of BAE’s
alleged offending, which includes corruption and bribery, and to provide
the court with adequate sentencing powers.
The groups argue that the SFO has unlawfully concluded that factors
weighing against prosecuting the more serious charges of corruption
outweigh those in favour of prosecution.
Nicholas Hildyard, for The Corner House, says:
“Plea bargains should only ever be entertained when companies have really
come clean. BAE has not. Once again, an SFO decision has reinforced the
UK’s reputation for letting big companies get away with bribing. Once
again, it has shown a blatant disregard for the rule of law.”
Kaye Stearman, CAAT’s spokesperson, says:
“The SFO plea bargain is unlawful. Investigations into alleged corruption
in at least three countries have simply been dropped. It is in the public
interest that BAE should not be let off the hook.”
The groups’ lawyers also requested that the Serious Fraud Office delay
applying for court approval of its settlement with BAE Systems. If it does
not do so, the two groups will seek an injunction against the court
application.
Rumor Of New MRAP Contracts For Afghanistan May Bouy Navistar
Filed under: BAE Systems, Business Line, Companies, Department of Defense, Events, Force Protection, Navistar, Oshkosh Truck Corp, Services, logistics, production program
An internal memo from within the Department of Defense some how leaked out. It states that in support of the U.S. operations in Afghanistan a further 2,500 Mine Resistant Ambush Protected (MRAP) vehicles will be required. Over the last two years the focus of acquisition for these kind of vehicles has been the Oshkosh produced MRAP-AT which was the result of the MRAP-All Terrain Vehicle (ATV) contest. The MRAP-ATV requirements were for a lighter, more maneuverable vehicle able to operate better in Afghanistan’s rough terrain.
Navistar was unable to win the MRAP-ATV contest and have missed out on the several hundred million dollars worth of orders for those vehicles. If the memo is correct an order for over one thousand of their MRAP type vehicles for use in Afghanistan will be welcome. The U.S. military has spent a great deal on MRAPs to serve in Iraq and Afghanistan over the last five years. They now possess significant numbers of them and will use them for several years to come. There will be little need to buy more of them and this will affect Navistar, BAE Systems and Force Protection all who ramped up production to meet demand.
India To Invest In U.S. Towed Artillery Pieces
Filed under: BAE Systems, Business Line, Companies, Contract Awards, Countries, Events, India, production program
The U.S. military uses three primary artillery systems for its fire support. These are the M109 Paladin self propelled 155mm howitzer, the M270 Multiple Launch Rocket System (MLRS) in tracked and wheeled versions; and the M777 lightweight 155mm towed howitzer. All three of these systems have seen a great deal of use over the last twenty years and performed effectively. It was announced yesterday that India’s government intends to buy 145 of the M177 systems.
This contract will be worth over $600 million if fully executed. The M777 is made by BAE Systems and due to its weight and mobility is ideal to support Indian forces in mountainous regions and represents a significant technological upgrade to their existing inventory of Swedish, Russian and British systems.
BAE Systems Reveals Upgraded M109 Paladin Howitzer
Filed under: BAE Systems, Business Line, Companies, Contract Awards, Events, Services, U.S. Army, development program, logistics, production program
The U.S. Army had awarded BAE Systems a contract to develop the Paladin Integrated Management (PIM) vehicle. This is an upgraded, modernized M109 self-propelled 155mm howitzer. The M109 has been the core of U.S. artillery since the mid-Seventies. The contract was for $64 million and will deliver seven vehicles for evaluation. Yesterday BAE rolled out the first of five howitzers.
The contract will also see two vehicles modified to provide ammunition support for the howitzers. The PIM combines parts of the M109 with the M2 Bradley fighting vehicle along with upgraded digital electronics and power train. The goal is to extend the life of the artillery and maintain its use to support American combat brigades. If the PIM is a success then BAE Systems will modernize many of the existing M109 in use with the Army and Marines.
England Continues Contract Awards With Rolls-Royce Engine Maintenance
Filed under: BAE Systems, Business Line, Companies, Contract Awards, Countries, England, Events, Military Aviation, Rolls-Royce, Services, logistics, production program
Over the last week or so the English Ministry of Defence has awarded several major contracts. Some of these like that for the new aircraft carriers are to continue the modernization of the U.K.’s armed forces. Late last week they announced one to maintain current capabilities. This was a ten year deal to Rolls-Royce to provide the logistics support for the Royal Air Force’s Typhoon fighter and attack aircraft. The contract could be worth over $1.5 billion in the end.
The Eurofighter Typhoon program has been very successful with sales to several European countries and Saudi Arabia. In England the biggest partner for the manufacturing is BAE Systems. There had been some talk due to their budget problems of the U.K. delaying their latest order but in the end they went through with it. The aircraft makes a substantial contribution to the U.K. aerospace industry.
Australia Awards BAE Systems Helicopter Support Contract
Filed under: Australia, BAE Systems, Business Line, Companies, Contract Awards, Countries, Events, Military Aviation, Sikorsky, UTC, logistics
The Australian Government announced that they have awarded BAE Systems a three year contract with five options to support their fleet of S-70 Black Hawk utility helicopters. The contract is worth $35 million (Australian) for the fist three years. It is expected at the end of the eight years that the Sikorsky helicopters will be replaced by new aircraft.
The Black Hawk is in use with the U.S. Army, Navy and Air Force as well as enjoying strong sales to overseas customers. It was developed to replace the ubiquitous UH-1 of the Vietnam Era. The S-70 is the export version of the aircraft. Australia has been a strong ally of the U.S. in its fighting in Afghanistan and has had Black Hawks since the mid-Eighties.
BAE Systems Working On Future Royal Navy Ships
Filed under: BAE Systems, Business Line, Companies, Contract Awards, Countries, England, Events, development program, production program
The Royal Navy has one major program underway right now. This is the new aircraft carrier which hopefully will deliver the two largest carriers used by the service in its history. Now BAE Systems has announced that they are designing the new surface combatants that will support these ships as well as perform general duties. The company has just started on a preliminary design for the two destroyers. If all goes well a production contract will be awarded in about ten years. The RN hopefully will buy up to twenty of these ships.
The U.S. Navy’s DDG-1000 and Littoral Combat Ship (LCS) programs are their new warships but those programs have suffered from development and cost issues. Right now the DDG-1000 is on hold while the U.S. continues to build DDG-51 class ships. The LCS program was to have two different designs built by Northrop and General Dynamics but now a down select is planned for one ship only.
The British Government faces major budgetary pressures due to the world’s economic doldrums and social spending. This along with the cost of operations in Afghanistan may lead to limits on how many ships may be built in the future. The carrier program itself may be delayed if funding issues persist. Despite the need for new surface ships it is not necessarily the best time for programs like this.
BAE Continues To Build Armor Kits For Military Vehicles
Filed under: BAE Systems, Business Line, Companies, Contract Awards, Events, Services, U.S. Army, logistics, production program
Yesterday it was announced that BAE Systems won two different contracts to build armor kits for U.S. military vehicles. Due to the IED and mine threat in Iraq and Afghanistan the Army and Marines primarily have been developing extra armor and weapons for their different vehicles to maximize crew protection. BAE’s two contracts support the HIMARS mobile artillery as well as one for MRAP vehicles.
BAE Systems through its acquisition of Armor Holdings a few years ago made it well placed to get into this market. If the U.S. does begin winding down its operations in Iraq and Afghanistan though there will be little demand for further armor kits of these types and that market might dry up.
MEDEVAC presentation boosts agenda for Military Airlift and Rapid Reaction Operations 2009! — Press Release
Filed under: BAE Systems, Business Line, Companies, Events, IT, Military Aviation, Press Releases, Promotions, logistics
MEDEVAC presentation boosts agenda for Military Airlift and Rapid Reaction Operations 2009!
With only 4 weeks to go until SMi’s Military Airlift & Rapid Reaction Operations conference, Robert Lamb, President of the RMSI has confirmed his participation. A specialist in the field of medical evacuation, Robert’s presentation will assess how civilian air ambulance support teams are reducing the burden for a strained military medical system.
Following the huge success of events in Rome (2007) & Seville (2008), Military Airlift & Rapid Reaction Operations 2009 is taking place in Frankfurt (Germany) between the 30th November – 1st December. Bringing together key senior policy and decision makers from the military air mobility, humanitarian mission; aircraft manufacturer and air charter communities this event is one not to be missed.
An exceptional programme features keynote addresses from Major General Joachim Wundrak, Deputy Commander, German Air Force Command; Brigadier General (S) Mark Dillon, Commander 86th Airlift Wing, Kaiserslautern Military Community Commander, Headquarters US Air Forces in Europe, Ramstein Air Base, Germany; and Brigadier General Timothy Zadalis¸ Commander, 21st Expeditionary Mobility Task Force, United States Air Force.
The conference comes with the opportunity to visit Ramstein Air Base on 2nd December. Ramstein Air Base is part of the Kaiserslautern Military Community & serves as headquarters for U.S. Air Forces in Europe and is also a North Atlantic Treaty Organization installation.
Places for this sell-out event are booking fast. For full conference details please visit www.smi-online.co.uk/09milairlift16.asp
This event is sponsored by: AmSafe, BAE Systems Asset Management, Chapman Freeborn Air Chartering, Hale Hamilton, Polet Airlines, National Air Cargo, Northrop Grumman, RMSI, TLD Group, QinetiQ & Volga Dnepr UK
Rolls-Royce To Build Engines For U.S. Training Aircraft
Filed under: BAE Systems, Boeing, Business Line, Companies, Contract Awards, Department of Defense, Events, McDonnell Douglas, Military Aviation, Rolls-Royce, Services, U.S. Navy, logistics, production program, training
The U.S. Defense Department awarded a contract to Rolls-Royce to deliver F405-RR-401 jet engines. The $90 million contract will be to build the engines for the T-45 jet trainer as well as perform maintenance and logistics support for them. The bulk of the production will occur at Rolls-Royce’s Indiana facilities with support occurring wherever the Navy needs it.
The T-45 Goshawk is a modern, singled engine two seat trainer. Based on a BAE design it was originally manufactured by McDonnell Douglas in the United States before that company was acquired by Boeing. Over two hundred of the aircraft have been delivered to the Navy and they are able to conduct carrier landings and training.
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.
Oshkosh Defense Receives Orders from BAE Systems Valued at $24 Million to Supply TAK-4 Independent Suspension for MRAPs — Press Release
Filed under: BAE Systems, Business Line, Companies, Contract Awards, Events, Oshkosh Truck Corp, Press Releases, logistics, production program
Oshkosh Defense Receives Orders from BAE Systems Valued at $24 Million to Supply TAK-4 Independent Suspension for MRAPs
OSHKOSH, Wis. (Sept. 28, 2009) – Oshkosh Corporation (NYSE: OSK) announced today that its Defense division has received orders valued at $24 million to supply its TAK-4® independent suspension system for more than 300 BAE Systems USCS RG-33 Mine Resistant Ambush Protected (MRAP) vehicles. BAE issued the orders following the receipt of contracts awarded from the MRAP Joint Program Office.
These are the latest in multiple deliveries Oshkosh Defense has received for its advanced independent suspension system to be supplied for legacy MRAPs. The TAK-4 system provides improved mobility for the difficult on- and off-road terrain in Afghanistan.
“The Oshkosh TAK-4 independent suspension delivers increased cross-country performance for legacy MRAPs to successfully handle and negotiate the most challenging environments,” said Robert G. Bohn, Oshkosh Corporation chairman and chief executive officer. “Our advanced suspension system is a more durable alternative than straight-axle suspensions, providing improved performance and greater crew comfort on rugged terrain.”
In testing of a BAE Systems RG-33 MRAP upgraded with the Oshkosh TAK-4 system, the military determined the enhancement significantly improved the vehicle’s mobility. Based on this successful testing, Oshkosh worked with BAE Systems to develop a suspension kit for the RG-33 USSOCOM variant.
The vehicles will be upgraded in theater, with work expected to be completed by March 31, 2010. Oshkosh Defense is working with multiple manufacturers of legacy MRAPs and has now received orders for more than 2,300 TAK-4 systems for the vehicles.
The advanced suspension system, which has undergone more than 400,000 miles of government testing, also is featured on the MRAP-All Terrain Vehicle (M-ATV) and the U.S. Army’s Palletized Load System (PLS A1), as well as the U.S. Marine Corps’ Medium Tactical Vehicle Replacement (MTVR) and Logistics Vehicle System Replacement (LVSR).
Vehicles outfitted with Oshkosh’s TAK-4 independent suspension system benefit from:
· Increased vehicle mobility – 16 inches of independent wheel travel provide advanced off-road capabilities in the most rugged terrain of Afghanistan
· Improved ride quality – shock and vibration are greatly reduced resulting in mission-ready soldiers and Marines and longer component life
· Greater off-road speeds – speed off-road is almost triple that of straight axle vehicles, improving mobility as well as survivability
· Lower life-cycle costs – more than 75 percent of the parts are common with the U.S. Marine Corps MTVR for improved reliability, as well as streamlined availability and training.
Oshkosh Defense is a current manufacturer of both medium and heavy tactical wheeled vehicles for the U.S. Department of Defense, having produced more than 67,000 new vehicles in its manufacturing facilities. The company’s use of an advanced integrated assembly line has allowed for the simultaneous production of as many as 10 vehicle models with 29 variations. A highly skilled in-house engineering team coupled with an experienced production workforce help Oshkosh continually improve vehicle quality levels through design innovations, assembly process improvements and lean manufacturing.
About Oshkosh Defense
Oshkosh Defense, a division of Oshkosh Corporation, is an industry-leading global designer and manufacturer of tactical military trucks and armored wheeled vehicles, delivering a full product line of conventional and hybrid vehicles, advanced armor options, proprietary suspensions and vehicles with payloads that can exceed 70 tons. Oshkosh Defense provides a global service and supply network including full life-cycle support and remanufacturing, and its vehicles are recognized the world over for superior performance, reliability and protection. For more information, visit www.oshkoshdefense.com.
About Oshkosh Corporation
Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Oshkosh Corp. manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Medtec®, Jerr-Dan®, BAI™, Oshkosh Specialty Vehicles, Frontline™, SMIT™, CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide in businesses where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, log on to www.oshkoshcorporation.com.
®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.
# # #
Forward-Looking Statements
This press release contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this press release, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the consequences of financial leverage associated with the JLG acquisition, including the level of the Company’s borrowing costs, the increased interest rates the Company would face if it experienced a deterioration or downgrade in credit agency ratings and the Company’s ability to maintain compliance with its financial covenants under its credit agreement; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during a global recession and credit crisis; the duration of the global recession, which could lead to additional impairment charges related to many of the Company’s intangible assets; risks related to the required increase in the rate of production for the M-ATV and FMTV contracts, and the amount, if any, of additional orders for M-ATVs and/or FMTVs that the Company may receive; the outcome of the formal protests of the FMTV award to the Company: the expected level and timing of U.S. Department of Defense procurement of products and services and funding thereof; risks related to reductions in government expenditures and the uncertainty of government contracts; risks related to production delays as a result of the economy’s impact on the Company’s suppliers; the potential for commodity costs to rise sharply in a future economic recovery; risks associated with international operations and sales, including foreign currency fluctuations; risks related to the collectibility of receivables during a recession, particularly for those businesses with exposure to construction markets; and the potential for increased costs relating to compliance with changes in laws and regulations. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release. The Company assumes no obligation, and disclaims any duty, to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Land Munition Solutions 2009 Conference
Filed under: BAE Systems, Business Line, Companies, Countries, Czech Republic, Events, Industry Analysis, Promotions, Trade Shows and Events, logistics, production program
Insurgent threats in operational theatres are continuing to diversify. Without an effective munitions management and procurement strategy the ability of our forces to fight the irregular warfare battle will become diminished.
Land Munition Solutions 2009 will bring together over 200 leading military, government and industry experts in the munitions field to discuss and debate the key issues facing the munitions industry today, such as:
• What effect have current operations had on our munitions acquisition and management strategy?
• What are the urgent operational requirements and what is affordable?
• A detailed examination of insensitive munitions
• How is the target set changing in operational theatres and its effect on current stockpiles?
• What future solutions will increase lethality yet reduce collateral damage?
We are honoured to present a distinguished speaker panel, brought from across the world. Their presence along with that of the assembled delegation of senior level military and industry attendees will ensure 3 days of unparalleled learning and networking opportunities.
Here from speakers including:
• Jyuji Hewitt, Deputy Commander, US Army Joint Munitions Command, USA
• Dr Joseph Lannon, Director, Armament Research, Development and Engineering Center (ARDEC), USA
• Dr Helmut Muthig, President & CEO, TDW Gesellschaft für verteidigungstechnische Wirksysteme mbH and Vice President for Germany of the Insensitive Munition European Manufacturers Group (IMEMG), Germany
• Lieutenant Colonel Michael Koehler, In-Service Manager Army Ammunition, German Army Office, Bundeswehr, Germany
Land Munition Solutions will be the only place to discuss and understand the latest munitions developments, meet with the key procurement personnel and see the latest solutions being developed by industry.
Please visit www.land-munitions.com for full programme and speaker updates. Please quote LMS DPN
Sponsor: BAE Systems
BAE To Work With Arsenal On Armor
Filed under: BAE Systems, Business Line, Companies, Contract Awards, Department of Defense, Services, States, development program, logistics, production program
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.
U.S. Army Buys BAE Systems Vehicle Emergency Escape (VEE) Windows
Filed under: BAE Systems, Business Line, Companies, Contract Awards, Events, Services, U.S. Army, logistics, production program
The U.S Army signed a contract with BAE Systems to integrate their Vehicle Emergency Escape (VEE) windows into the M1151 HUMVEE vehicle. If all options on the contract are executed it could be worth up to $89 million.
The VEE system provides a way for occupants to quickly leave the vehicle if there is an attack or accident. The system is part of a series of upgrades to the vehicle to improve survivability. The VEE Window kits have already been purchased and installed on other military vehicles and have multiple applications.
Photo courtesy of BAE Systems.
Oshkosh Keeps Winning
Filed under: BAE Systems, Business Line, Companies, Contract Awards, Department of Defense, Events, Navistar, Oshkosh Truck Corp, Services, U.S. Army, logistics, production program
Fresh off of winning two contracts for the new MRAP-ATV worth over a billion dollars for use in Afghanistan Oshkosh announced that they had won two smaller contracts. These are only worth about $36 million but indicate that the company is showing some strength. The first is for heavy trucks to support U.S. Army engineering troops. The second is to treat Army tanker trucks to protect against rupturing and burning fuel during transport.
The MRAP-ATV contract is probably the last major contract for these types of vehicles. The win by Oshkosh has already caused ripples through out the industry with Navistar and BAE Systems losing work and jobs. The U.S. military is thinking now how to fit the existing MRAP vehicles purchased for Iraq into their tactical organizations. The MRAP-ATV will be lighter and more maneuverable to support operations in rougher terrain.
BAE Systems To Provide Night Vision Enhancement Systems To U.S. Army
Filed under: BAE Systems, Business Line, Companies, Contract Awards, Events, IT, Massachusetts, Services, States, U.S. Army, development program, logistics, production program
BAE Systems following up on an announcement last week said that they were awarded two separate contracts by the U.S. Army to provide night vision systems and laser modules. The two contracts together are worth over $2 billion dollars. A formal press conference will be held today at their Lexington, MA plant.
The first contract is worth almost two billion itself and is for 338 Driver’s Vision Enhancers (DVE). These are installed on a variety of vehicles in use by the U.S. military to improve driving at night. The second contract is for 1,990 Laser Target Locator Modules (LTLM). These are used to point out targets. Both contracts will last five years.
The DVE contract illustrates that modern electronics are very expensive. Installing one of these on a truck adds tens of thousands of dollars to the cost of that system. It does though add significant capability through improving the ability to drive in reduced visibility.
Follow On MRAP-ATV Contract Awarded To Oshkosh
Filed under: BAE Systems, Business Line, Companies, Contract Additions, Contract Awards, Countries, Department of Defense, Events, Force Protection, Michigan, Mississippi, Navistar, Oshkosh Truck Corp, Services, South Carolina, States, United States, production program
At the end of June Oshkosh won the initial MRAP-ATV contract from the U.S. Department of Defense. This one billion dollar contract was for over two thousand of the lighter and more maneuverable Mine Resistant Ambush Protected (MRAP) vehicles for use in Afghanistan. The DoD conducted a contest between a variety of companies that included a “drive off” to demonstrate capability. While it was thought that more then one company would win contracts only Oshkosh received an order.
Now it was announced today that Oshkosh won a follow on order for another seventeen hundred vehicles for another billion dollars. The company already had to invest in expanding its workforce and capability to meet the first one. Part of any contract award by the Defense Department is based on the winner’s demonstration that they are able to meet the production and quantity requirements so Oshkosh should be able to build these. The follow on award though will deal a further blow to Navistar, BAE Systems and Force Protection efforts in the MRAP business.
The U.S. had rapidly purchased a variety of different MRAP vehicles for about four years to provide protection for troops as they moved around Iraq. There is an on-going struggle how to fit these vehicles into their tactical formations now that those operations are winding down. The MRAP are big, road optimized vehicles and are not designed for use in rough terrain or combat. This is part of the reason that the Future Combat System (FCS) vehicle portion was canceled. There may soon be an end to the purchase of any large numbers of MRAP as future more tactical combat vehicles are purchased.
BAE Reports Loss For Most Recent Quarter
Filed under: BAE Systems, Business Line, Companies, Congress, Countries, Department of Defense, Earnings, England, Events, Oshkosh Truck Corp, Services, production program
BAE Systems reported its most recent quarterly results and had a loss of just over $135 million. The same quarter last year saw profits of over $800 million. The English company was hit badly by a downturn in the U.S. market for Mine Resistant Ambush Protected (MRAP) vehicles as the contracts for those vehicles needed in Iraq ended. Oshkosh was able to win the new MRAP-ATV contract that will supply lighter, more maneuverable vehicle to be used in Afghanistan.
BAE like all of the other major defense contractors is looking askance at the future Obama budgets. It has a role to play in the F-22 and Future Combat Systems (FCS) programs ended in the 2010 budget. This is revenue that may not be made up with new contracts. The company does support the F-35 JSF as well which will see an acceleration if plans are carried out.
There may also be a future blow back against the non-U.S. companies politically if the defense budget does decline severely in the next few years. The limited work might be directed to those remaining big contractors that are home based. BAE has made efforts to expand into the market through acquisition of U.S. companies and capabiliites so that might cushion any blows.
Earnings have been mixed this quarter and the results in nine to twelve months will tell the real story of how the defense market is falling out.
English Defense Industry Looking Bleak
Filed under: BAE Systems, Business Line, Companies, Contract Awards, Countries, Department of Defense, England, Events, Military Aviation, Scotland, Services, VT Group, production program
It is true that the United States defense budget does dominate the world’s spending on arms and equipment but the U.K. has always had large spending plans as well. Now that the U.K. government of Gordon Brown is facing massive deficits due to social spending and attempts at stimulating their own economy since the global recession began twelve months or so ago defence spending may get a little tight. There has already been discussion of canceling some large programs as well as cutting back on general spending. Like in the U.S. ending these kind of programs will lead to more job losses on top of those already gone in the civilian economy.
That is why stories like this one about the U.S. military buying BAE Systems artillery pieces that will be made in the U.K. will become more common. When you are relying on foriegn sales to keep up jobs for six months at a time it is not a good sign. There are bigger programs at risk for the U.K. such as the Eurofighter or A400M transports. The government is scrambling to maintain the new aircraft carrier contract as the jobs at Scottish shipyards are key to that part of the nation’s economy.
There is no doubt that the U.S. will also see a fall in defense spending as the pressures of debt, health care reform and other priorities will limit the money available from the Obama Administration’s budget.
Australia Awards Major Ship Contract
Filed under: Australia, BAE Systems, Business Line, Companies, Contract Awards, Countries, Events, production program
The Australian Government awarded BAE Systems a contract worth about $300 million (US) to begin laying down the new Hobart class anti-air warfare destroyers. The total program is worth over eight billion (US). On top of that over 200 jobs will be added to the shipyard where the class will be built.
The contract is for various hull blocks for the class of ships. The construction also involves Australian companies FORGACS Group and ASC Pty Ltd. The Hobart class is part of the modernization of the Australian Navy and the country’s armed forces in general recently planned on by the current government. BAE will also provide major communication and weapon systems for the ship.
MRAP-ATV Contract Continues On Track
Filed under: BAE Systems, Business Line, Companies, Congress, Contract Awards, Department of Defense, Events, Federal Budget Process, Force Protection, Oshkosh Truck Corp, Proposal, Services, U.S. Army, U.S. Marine Corps, logistics, production program
The MRAP-ATV is a program to develop a lighter, more maneuverable Mine Resistant Ambush Protected vehicle for use in Afghanistan. The Army has been working on awarding a production contract by the end of this quarter. Reports indicated that that will happen and one or more companies who are participating in the current testing will receive an order.
The Army and other Services have invested a great deal of money in the last five years into these systems to counter the IED and mine threat in Iraq and Afghanistan. The vehicles due to their size and weight primarily are road bound and provide point-to-point transport. The rougher terrain in Afghanistan and lack of roads has led to the MRAP-ATV requirement. The program has moved fast as basically all of the vehicles proposed are existing systems.
The winner(s) will see a great deal of work quickly as the military hopes to ramp up production and quantities very quickly. The use of MRAP and their force mix are all undergoing study as the U.S. tries to fit them into its regular tactical organizations and doctrine.
England Vacillating On Next Batch Of Eurofighters
Filed under: BAE Systems, Business Line, Companies, Contract Additions, Contract Awards, Countries, England, Events, Germany, Military Aviation, Restructuring, Rolls-Royce, development program, production program
Back in May we had written that England would go ahead with the full buy of the next order of Eurofighter Typhoon modern fighter aircraft. This was based on the fact that the costs associated with canceling the contract would be prohibitive. There was also some hope that part of the aircraft could be used to fulfill foriegn military sales rather then seeing service with the Royal Air Force.
Now it is reported that the deal may fall through after all. England like America is faced with economic problems that have led to massive borrowing and an attempt to spend their way out off the recession. This means that funds are limited and the cost of the new aircraft fairly prohibitive. Not only will there be the cost of breaking the contract but several thousand jobs related to building the aircraft may be lost. The government is trying to renegotiate the price or the fees in order to save some money but time is running out. Germany has restated their support for the program and an intent to go ahead and buy the latest batch.
When the original contract was signed England did not imagine that they would not have enough money. It was they who insisted on the strict and high fees if the contract was not followed through on in an attempt to keep the other countries involved from leaving. This had happened several times in the past when NATO and the U.S. joined on various development and procurement programs.
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