Bittersweet Symphony: Lockheed & A-V Deliver Anti-IED Devices
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Vehicle mounted systems are one element of the USA’s Joint Counter Radio-Controlled Improvised Explosive Device (RCIED) Electronic Warfare (JCREW 2) program. Lockheed Martin’s Symphony IED Jammer System is a programmable, vehicle mounted radio-frequency IED jammer with a role that’s similar to other fielded systems including Elisra’s EJAB, as well as ICE and ITT’s Warlock/ JCREW.
Neither Lockheed nor the Army are releasing details concerning the Symphony system, but it is known to come from the Canadian/UK firm Allen-Vanguard, who also acts in this capacity for General Dynamics ATP via their Med-Eng subsidiary. Outside the USA, Allen-Vanguard supplies jamming devices directly to Canada, Australia, and various European militaries. Symphony orders are continuing, and the latest addition is a major new 5-year contract…
Contracts & Key Events
Unless otherwise specified, contracts are issued by the Naval Sea Systems Command in Washington, DC to Lockheed Martin Maritime Systems and Sensors (LM MS2) in Manassas, VA.
May 6/11: Lockheed Martin announces that it has just delivered its 2,000th Symphony jamming system.
Dec 15/09: Lockheed Martin Maritime Systems and Sensors in Manassas, VA receives a $940 million maximum value 5-year contract if all options are exercised, beginning with an initial $40.7 million order under the indefinite-delivery/ indefinite-quantity firm-fixed-price contract. It includes time-and-material service line items for the production and delivery of SYMPHONY improvised explosive device jammer systems, as well as field test sets, operator reference cards, uploader software, user guides, program protection, tool kits, depot support, field and engineering services, and system documentation “in support of allied coalition and partner nations.”
Work will be performed in Clearwater, FL (77%); Manassas, VA (22%); and in theater and locations out the contiguous United States (1%). Work is expected to be complete by September 2014. This contract was not competitively procured by the Naval Sea Systems Command in Washington, DC (N00024-10-D-4203).
Lockheed Martin’s release says that since 2006, it has delivered more than 1,000 systems and, prior to the latest contract, had received orders totaling $126 million.
Nov 2/08: A briefing [PDF transcript] from Iraqi General Nasier Abadi, Vice Chief of Staff of the Iraqi Joint Forces, includes this item:
“There have been delivery of jamming systems, a modern system of symphony for the Engineering Corps and it was connected to the Humvee vehicles for Divisions 1, 2, 5, 6, 9, and 11.”
April 20/08: CENTCOM announces [PDF] that fielding of the Symphony system is now underway within the Baghdad area of operation, after “numerous administrative and technical delays.” The system is expected to be fully fielded by summer 2008.
In 2006, the Government of Iraq signed a $51 million contract to purchase 411 Symphony jammers to counter IED land mines. “Along with the 411 Symphony systems which cost around $78,000 a piece the contract will include a nine month support and sustainment contract from original equipment manufacturer Lockheed Martin…” These services will include depot level maintenance, and updates to reflect the most recent electronic threat profiles. The Taji National Depot will become the long term Symphony installation and maintenance facility after the transition to Iraqi control.
Symphont systems will equip “tier one and two vehicles,” and will be distributed to Iraqi Special Operation Forces, Iraqi Army, police, national police and explosive ordinance disposal units.
Oct 10/07: Allen-Vanguard Corporation of Ottawa, Canada announces that it has received an order valued at approximately C$ 25 million (slightly more than USD $25 million) to supply 573 additional ECM systems and ancillary equipment for Mine Resistant Ambush Protected (MRAP) vehicles. The Company stated that it expects to complete delivery of the order by the end of its third quarter in fiscal 2008.
Sept 28/07: Allen-Vanguard Corporation announces a C$ 12.2 million U.S. Department of Defense order for to supply spares in support of the Company’s existing in-service electronics counter measures (“ECM”) equipment. The Company stated that it expects to complete delivery of the order by the end of its third quarter in fiscal 2008.
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Sept 17/07: Allen-Vanguard announces that its acquisition of Med-Eng is complete. A subsequent Oct 25/07 release describes the new corporate structure and reorganization.
Aug 17/07: Allen-Vanguard Corporation of Ottawa, Canada announces an order from Lockheed Martin for 523 Symphony ECM component systems valued at approximately C$ 21 million. This order is the first 523 component systems against the previously announced requirement for up to 1,000 Symphony units. Allen-Vanguard began advance shipments against this order in July 2007, and expects to complete delivery of substantially all 523 units by the end of the Company’s fourth quarter of fiscal 2007 which ends Sept 30/07.
Aug 7/07: A $51 million firm-fixed-price, time and material modification to previously awarded contract (N00024-06-C-6363) for production and delivery of 523 (ea) SYMPHONY improvised explosive device (IED) jammer systems; including field test sets, operator reference cards, uploader software, user guides, program protection, tool kits, depot support, field service engineering, and system documentation, for various coalition partners in support of Operation Iraqi Freedom.
Work will be performed in Manassas, VA (90%) and military theaters of operation (10%), and is expected to be complete by September 2008. Contract funds will not expire at the end of the current fiscal year. This contract combines support of the U.S. Navy (4%) and the Governments of Iraq (66%) and Georgia (30%) under the Foreign Military Sales program.
Aug 3/07: Allen-Vanguard Corporation announces a definitive agreement with the shareholders of Med-Eng Systems Inc. to purchase all the shares, on a debt and cash free basis, of Med-Eng for C$ 600 million, plus about $50 million to buy excess working capital. The Transaction is expected to close on or about Aug 31/07, subject to receipt of required regulatory and other approvals.
Med-Eng of Ottawa, Canada makes personal and vehicle cooling systems, armor, and bomb suits. They also produce digital land mine jammers, and supply Canadian and Australian forces while being subcontracted to General Dynamics Armament and Technical Products in the USA. In its fiscal year ended December 31, 2006, Med-Eng recorded revenue of $261 million, and EBITDA of $98 million. Almost 90% of the revenue was from sales in North America, primarily in the USA.
Allen-Vanguard was the winning bidder in a limited auction process to sell Med-Eng whose principal owners are 2 private equity firms exiting their position as long term investors. Speaking on behalf of the largest shareholder, Mr. Paul Echenberg of Schroders & Associates commented that “Price was not the only consideration in selecting a winner. Compatibility with the organizational culture and the aspirations of management and staff at Med-Eng were also priorities, and we believe that these will be best realized with Allen-Vanguard.”
Allen-Vanguard itself has said that it intends to leverage the sale in order to create “Technology synergies, including the unique ability to orchestrate a global strategy to harmonize different ECM platforms among various countries consistent with government policies and export controls, and pooling of expertise to ensure a sustained global lead in ECM technology.”
May 8/07: Corporate release:
“Allen-Vanguard Corporation (the “Company” or “Allen-Vanguard”) (TSX: VRS) of Ottawa, Canada confirms that the U.S. Department of Defense (“DoD”) has posted an amendment to the pre-solicitation notice of intent to contract on a sole-source basis with Lockheed Martin for Symphony ECM systems for coalition forces operations. This amendment modifies the original announcement dated 19 April 2007 by changing the “up to” quantity of SYMPHONY systems from 600 to 1000…
Allen-Vanguard is the supplier of Symphony ECM component sets to Lockheed Martin under the terms of a seven year Technology License and Supply Agreement between the two companies announced January 18, 2006. The last similar order to Allen-Vanguard from Lockheed Martin was for 196 Symphony component systems at a value of approximately C$8 million.”
Mar 14/07: Allen-Vanguard Corporation of Ottawa, Canada announces orders valued at approximately C$ 3 million to supply Lockheed Martin with additional advanced ECM equipment, scheduled for delivery early in the third quarter of fiscal 2007. The $3 million in order notification is a partial exercise of the option for up to $22 million in additional ECM equipment, pursuant to the $8 million order received from Lockheed Martin on Sept 29/06.
March 13/07: Lockheed Martin Maritime Systems and Sensors (LM MS2) in Manassas, VA received a a $6.5 million modification to previously awarded contract N00024-06-C-6363 for the production and delivery of 55 SYMPHONY Improvised Explosive Device (IED) Jammer Systems. The order includes Field Test Sets, Operator Reference Cards, Uploader Software, user guides, program protection, tool kits, depot support, field service engineering, and system documentation in support of Operation Iraqi Freedom.
Work will be performed in Manassas, VA and is expected to be complete by September 2008.
Jan 25/07: Allen-Vanguard Corporation announces an order worth C$ 3 million from a “Commonwealth country” (likely Australia) for its digital anti-mine ECM equipment. “The order is the first from this Commonwealth country and represents an initial contract with expected follow-on requirements. Delivery is expected to take place in the Company’s third quarter.”
Dec 1/06: Allen-Vanguard Corporation of Ottawa, Canada announces a C$3.75 million order from “another European NATO country” for its advanced digital ECM equipment which is used to counter the threat of remotely detonated explosive threats. The order is expected to be complete in the first half of fiscal 2007, which commenced Oct 1/06.
This order is direct, and not through Lockheed Martin, whose agreement appears to cover US orders only.
Sept 29/06: Allen-Vanguard Corporation announces that Lockheed Martin Corporation has placed the first production order for the Company’s advanced digital ECM components which are used to counter the threat of remotely detonated explosive threats. The contract is worth up to C$ 30 million, consisting of an initial order of approximately C$ 8 million for urgent delivery and a follow-on option for approximately C$ 22 million. First deliveries are scheduled on a priority basis commencing in the first quarter of the company’s 2007 fiscal year.
Based on subsequent contracts, the revenue split appears to be 40% (LMCO)/ 60% (A-V).
The ECM components are for vehicle mounted systems and will be supplied from Allen-Vanguard’s production facility in Tewkesbury, U.K., which was recently upgraded into a scalable, dedicated operation that can support substantially higher annual ECM sales. “This first contract from Lockheed Martin could exceed our total ECM revenue for all of fiscal 2006, which ends September 30th 2006,” added the firm’s President & CEO.
Sept 28/06: Lockheed Martin Maritime Systems and Sensors (LM MS2) in Manassas, VA received a $19 million firm-fixed-price, time and material letter contract, for production and delivery of up to 208 Symphony Improvised Explosive Device (IED) Jammer Systems. The order includes field test sets, operator reference cards, antenna elevation kits, uploader software, user guides, tool kits, theater support, field service engineering, and system documentation for a 52 week period to meet urgent Department of Defense (DoD) requirements in Iraq & Afghanistan.
Work will be performed in Manassas, Va., and is expected to be completed by September 2007. Contract funds in the amount of $19 million will expire at the end of the current fiscal year (N00024-06-C-6363).
Sept 20/06: Allen-Vanguard announces “A European government client” has placed orders worth C$ 1.4 million the firm’s advanced digital electronic counter measures (ECM) systems. The systems are scheduled for delivery in the first half of fiscal 2007.
June 26/06: Allen-Vanguard Corporation of Ottawa, Canada announces a C$ 3.3 million order from a “standard-setting European nation” for its counter-IED ECM systems. The new order is scheduled for delivery before Sept 30/06, and that production facilities in the U.K. are being upgraded to accommodate growth in accumulated and anticipated ECM orders.
