British defense contractor BAE Systems PLC has agreed to buy U.S. rival United Defense Industries (UDI), subject to approval. The transaction was conducted through its subsidiary BAE Systems North America Inc., which entered into a definitive merger agreement to acquire the net debt and fully diluted share capital of United Defense for $75 per share in cash, or some $3.97 billion total. The acquisition is subject to both regulatory and shareholder approval.
Just two days after having its ban from the U.S. Air Force launch market lifted, Boeing has fired CEO Harry Stonecipher after an affair with a female executive came to the board’s attention. While the employee was not a direct report of Stonecipher’s and the affair did not itself violate the company’s code of conduct, the board concluded the facts reflected poorly on Stonecipher’s judgment, and would impair his ability to lead the company.
Lockheed Martin Corp. of Sunnyvale, CA received a $78.2 million cost-plus award-fee, cost-plus fixed-fee, firm fixed-price contract modification for advance procurement of long-lead parts for AEHF military communications satellite Vehicle #3 (SV3). This ensures that parts requiring significant lead-time to manufacture will be in place to assemble SV3 on schedule. Work will be complete by September 2008, with Lockheed Martin Space Systems Co. in Sunnyvale, CA (30%), and Northrop Grumman Space Technology in Los Angeles, CA (70%) sharing the work. The Headquarters Space and Missile Systems Center in Los Angeles, CA issued the contract (F04701-02-C-0002, P00102).
NAVISTAR International Transportation of Knoxville, TN received a delivery order amount of $61.8 million as part of a $311.5 million firm-fixed-price contract for 374 Afghanistan Medium Tactical Vehicles (AMTV). The AMTV contract is designed to provide the new Afghan National Army with a family of trucks to conduct operations in support of rebuilding and providing stability to Afghanistan. The family consists predominantly of 6X6 general transport trucks but also includes 5 other variants in lesser quantities: Recovery truck; Truck mounted Petroleum Oil and Lubricants (POL) pod; Truck mounted Water Carrier Pod; Hazardous material carrier; and Ambulances.
The contract includes a requirement for freight-on-board delivery. TACOM’s AMTV page details the entire process and defines other conditions of this contract, and explains how the contract was expedited. Work will be performed in Garland, TX and is expected to be completed by March 3, 2008. Five bids were received for this contract, following a solicitation on the web. The U.S. Army Tank-Automotive and Armaments Command in Warren, MI issued the contract (W56HZV-05-D-0144).
General Dynamics Armament and Technical Products of Charlotte, N.C., was awarded a $15.9 million modification to a firm-fixed-price contract to Support the Joint Biological Point Detection System (JBPDS). JBPDS is an automatic air sampling device which provides visual and audible alarms in the presence of biological agents. This sole source contract was initiated on Jan. 14, 2004, with completion expected by Dec. 30, 2006. Work will be performed in Charlotte, NC (40%) and Columbus, OH (60%). The U.S. Army Research, Development and Engineering Command at Aberdeen Proving Ground, MD issued the contract (W911SR-04-C-0017).
Northrop Grumman Systems Corp. in Bethpage, NY, received a $14 million firm-fixed-priced delivery order for the manufacture of engineering change proposal kits for the E-2C Group O Hawkeye for the Government of Japan under the Foreign Military Sales (FMS) Program (ECP-422-R1, Kit 9, 15-ton Enhanced Vapor Cycle and ECP-411-R1 200 Export Configuration Upgrade). The contract announcement, and the recent ESSM modification contract, come in the context of debate In Japan about its future military role, a state visit by Secretary of State Rice and Secretary of Defense Rumsfeld, and joint concern from Japan and the USA about the EU’s plan to lift restrictions on military sales to China. Other foreign customers of the E-2 airborne early warning and control aircraft include Egypt, France, Israel, Singapore, Taiwan, and Thailand; India has reportedly expressed interest.
Work on this order will be performed in Bethpage, NY and is expected to be completed in December 2007. The Naval Air Systems Command at Patuxent River, MD issued the order against a previously issued Basic Ordering Agreement (N00019-04-G-0003).
The National Guard Bureau in Arlington, VA has retained PBS&J Inc. of Nashville, TN as part of a $50M firm-fixed-price contract for investigation, architecture and engineering services. The contract is expected to be completed by Aug. 18, 2009, with locations to be defined by delivery orders. There were 64 bids solicited on March 25, 2004, and 7 bids were received. The National Guard Bureau in Arlington, VA issued the contract (W9133L-05-D-0003).
Lockheed Martin Systems of Owego, NY recently received two contracts related to the H-60R Seahawk Multi-Mission Helicopter (MMH). The first is a not-to-exceed $49 million definite-delivery/definite-quantity order under a basic ordering agreement contract (N00383-01-G-004N) to purchase spares for the Seahawk’s multi-mode radar system. Work will be performed in Farmington, NY (70%) and Owego, NY (30%), and is expected to be completed by December 2006. The Naval Inventory Control Point issued the order (Order 0023), which was not competitively procured.
LMS also received a $6.3 million cost-plus-incentive-fee modification to a previously issued basic ordering agreement (N00019-03-G-0014) to exercise an option and generate engineering change proposals for the MH-60R and MH-60S helicopters’ Link 16 data link system, including the middleware software and audio management. Work will be performed in Owego, NY, with completion expected by December 2005. The Naval Air Systems Command at Patuxent River, MD holds this agreement.
Northrop Grumman Ships Systems of Pascagoula, MS is being awarded a $10M cost-plus-fee modification to previously awarded contract (N00024-02-C-2302), in order to provide greater detail into the DD(X) Program Life Cycle Cost Estimate. The Navy’s DD(X) program is a family of surface combatant ships expected to serve until 2061, including destroyers, cruisers and smaller LCS craft for near-shore operations. Work on the Program Life Cycle Cost Estimate will be performed in Tewksbury, MA (35%); Pascagoula, MS (23%); Bath, ME (18%); Minneapolis, MN (7%); Moorestown, NJ (4%); Farmington, UT (4%); King George, VA (4%); Chantilly, VA (3%); and Alexandria, VA (2%), and is expected to be completed by March 2005. The Naval Sea Systems Command, Washington, DC, issued the contract.
Aero Thermo Technology Inc. of Huntsville, AL is being awarded a $6.2 million firm-fixed-price contract to provide technical, analytical and program support services for SSBN (submarine launched) and ICBM (land launched intercontinental) nuclear missile guidance systems. This contract contains options would bring the total cumulative value of this contract to $25.4 million. The Navy’s Strategic Systems Programs, Washington, DC issued this contract (N00030-05-C-0035), which was not competitively procured.
