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AVCATT

L-3 Communications Link Simulation and Training in Arlington, TX received a $33.4 million modification to a previously awarded fixed-price-incentive-fee contract (N61339-00-C-0002) to exercise an option for Lots 12, 13, 14, and 15 of the Aviation Combined Arms Tactical Trainer (AVCATT). Work will be performed in Arlington, TX and is expected to be complete in May 2007. The US Naval Air Warfare Center Training Systems Division in Orlando, FL issued the contract. See all DefenseLINK awards under this contract, beginning in 1999.

As DID has noted before, AVCATT-A creates a virtual wargaming world that provides an interactive, networked environment for five helicopter platforms, including the AH-64A Apache, OH-58D Kiowa Warrior, UH-60 Blackhawk, CH-47D Chinook and AH-64D Longbow. The system lets Army aviation units conduct collective training on a real-time, computerized battlefield that includes land and helicopter forces. Link’s SimuView PC image generation system provides computer-generated images of the simulated battlespace, which pilots view through a helmet mounted display system. Training includes intelligent, semi-automated enemies. The result is a highly competitive battle scenario that maximizes training effectiveness, followed by a review of their mission performance in AVCATT-A’s After Action Review Theater.

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G550 AWACS
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In a December 11, 2005 article, DID noted that South Korea was looking to award its E-X airborne early warning aircraft contract and get on with the program. Their $1.1 billion choice was the G550 platform offered by an American-Israeli consortium of General Dynamics Gulfstream, L-3 Communications, and Israel Aircraft Industries.

Unfortunately, DID also noted that snags with tech transfer of basic equipment like Link 16 avionics risked holding up the program. While the $1.3 billion deal with Eurocopter that DID also mentioned in that article went through smoothly yesterday, The Chosun Ibo reports that the E-X program does indeed face a delay over US technology transfers until some time in 2006. Read DID’s earlier report for the full briefing re: the two contending E-X bids, and the list of “banned” items.

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E-737 Wedgetail
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South Korea appears to be leaning toward some clear choices for its Korean Helicopter Program (KHP) utility helicopter competition, and its E-X airborne early warning (AEW) aircraft acquisition program. The projects have a combined budget of 7 trillion Won (about $7 billion).

A deal with Eurocopter has now been confirmed for 245 helicopters, and an Israeli-American consortium based on the General Dynamics Gulfstream G550 is believed to be the front runner in the E-X competiton – if technology transfer approval from the US government doesn’t delay South Korea’s E-X program again.

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CC-130 Hercules
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DID has covered the extreme age of Canada’s CC-130 fleet, and the special challenges it posed while an emergency replacement competition got underway. L-3 SPAR Aerospace has been Canada’s sole C-130 Hercules Centre of Excellence for more than 44 years, dating back to 1960 when SPAR’s predecessor NWI first started working on Canada’s original B Model Hercs. It has accumulated extensive experience with the aircraft, launching numerous avionics and structural upgrades and even creating international services like Hercules 2020.

Its Canadian maintenance contract will end soon, but L-3 SPAR has negotiated a four-month, C$ 25 million (USD $21.6 million) extension of an ongoing federal government contract whose next five-year C$ 432.4 million (USD $375 million) OWSM Program phase went to Abbotsford, BC’s Cascade Aerospace. The scope of work under the L-3 SPAR extension includes:

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Mid-tier defense conglomerate L-3 Communications has signed an agreement to acquire maritime electrical and electronics system supplier SAM Electronics GmbH (SAM) for U.S. $150 million in cash, subject to customary closing conditions and regulatory approvals. L-3 sees the sale as a fit with its existing power and controls business, and believes this will expand their opportunities in both new ship integration and power conversions as more ships migrate from mechanical systems to electric power. It also provides cross-geographic opportunities to SAM’s products in the USA, and some of L-3’s products in Germany and Asia – if the companies can execute.

The acquisition is expected to be completed in the first half of 2006 and to be slightly accretive to L-3’s earnings. SAM is expected to generate approximately $320 million of sales for the year ending December 31, 2006. No word yet on where SAM will fit into L-3’s revised corporate structure, though “Specialty Products” seems a good bet.

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C-40A Clipper
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L-3 Communications Corp. in Arlington, TX received a $20 million modification to a previously awarded indefinite-delivery/ indefinite-quantity contract (N00019-04-D-0110), exercising an option for logistics support services to the US Naval Reserve’s C-40A Clipper aircraft fleet. The previous award under this contract was for $20.1 million, and was issued on Dec 4, 2004. Total funding for all US military C-40 contracts to date has been approximately $1.1 billion.

The 737 based C-40A Clipper represents a substantial upgrade over the 1970s-era, DC-9 based, C-9 Skytrain, but their USAF leasing contracts have been a source of some controversy…

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LCAC into LPD-9
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L-3 Communications Titan Unidyne in Norfolk, VA won an $8.8 million firm-fixed-price contract to upgrade landing craft air cushion (LCAC) hovercraft 62, 64, 65, and 76. The US Marines’ LCACs can carry as many as 11 Humvee jeeps or a 60-ton M-1 Abrams tank directly from the well deck of an at-sea vessel like an LHD or LPD, and continue right up onto land before disembarking its cargo. Or, it can embark troops and vehicles on land and deliver them directly to an at-sea ship. A total of 91 LCACs were built between 1984-2001, and depending on their in-service dates they will require regular refurbishment, upgrades, and even life extension programs to keep them operational into the future.

Work will be performed in Camp Pendleton, CA and is expected to be complete by October 2006. This contract was competitively procured and advertised via the Internet, with two offers received. The Southwest Regional Maintenance Center in San Diego, CA issued the contract (N55236-06-C-0002).

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F-35 PCD Concept

L-3 Communications has announced that an international team led by its Display Systems (L-3 Display Systems) division has been awarded a System Development and Demonstration (SDD) contract from Lockheed Martin Aeronautics to provide the Panoramic Cockpit Display (PCD) subsystem for the F-35 Joint Strike Fighter (JSF) aircraft.

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MD-900 Explorer: Survivor
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DID has covered the US Army’s $2+ billion, 320 helicopter Light Utility Helicopter competition in numerous posts, from the original expected matchup between Bell Helicopter Textron 210 and MDHI-Lockheed’s MD-900 Explorer NOTAR, to the entry of the EADS Eurocopter EC145, and then the AugustaWestland and L-3 bid using the AB139.

The bids were recently submitted, but there have been a few changes along the way:

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L-3 Communications (NYSE:LLL) today announced its results for Q3 of FY 2005, including sales of $2.5 billion, operating income of $266.5 million, diluted earnings per share of $1.11, and net cash from operating activities of $219.0 million. All represent an increase over the same quarter last year; full details may be found in L-3’s financial release.

During Q3 2005 third quarter, L-3 also revised the aggregation of its divisions into four reportable segments, to provide a more clearly defined presentation of L-3’s businesses. The company’s reportable segments are now:

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