After nearly 15 months of off-and-on negotiations, Lockheed Martin Corp. and Boeing Co. said on May 3, 2005 that they will merge their struggling government rocket businesses. The companies said they expect the joint venture to generate $1.5 billion to $2 billion in revenue per year from the government and save it $100 million to $150 million a year. The firms have a similar joint venture to manage the day-to-day operations of NASA’s space shuttle program.
The deal must be approved by the Pentagon and U.S. and international regulatory agencies. If approved, it is expected to close by the end of the year (in fact, it closed in October 2006)…
Agusta-Westland of Cascina Costa di Samarate (near Varese, Italy) got a 5-year, 438 million euro order to service about 100 British Royal Air Force and Royal Navy Sea King helicopters. The figure works out to over EUR 750,000 per helicopter per year. Agusta-Westland will be the prime contractor in the Skios (Sea King Integrated Operational Support) program with the British defense ministry, while BAE systems, Avionics and Thales UK will be sub-contractors.
Battelle Columbus Operations in Columbus, OH received a $500 million indefinite-delivery/ indefinite-quantity contract. The program requirements are to design develop, construct, install, implement and deliver a lean and cellular transformation of the aircraft, engines, and commodities maintenance, repair and overhaul processes and industrial facilities at the Oklahoma City Air Logistics Center, Maintenance Directorate at Tinker Air Force Base, OK. The Air Force can issue delivery orders totaling up to the maximum amount indicated, though actual requirements may be less. Solicitation began July 2004, negotiations were completed March 2005, and work will be complete by April 2009. The Headquarters Oklahoma City Air Logistics Center at Tinker Air Force Base, OK issued the contract (FA8100-04-D-0002).
Raytheon Missile Systems in Tucson, AZ is being awarded a $7.5 million cost-plus award-fee contract to design, fabricate, test rapidly field and support a fixed Active Denial System (ADS) referred to as System 2 and ADS2.
Active Denial Technology exploits the body’s natural defense mechanism that induces pain as a warning to help protect it from injury. It uses a transmitter producing energy at a frequency of 95Ghz and an antenna to direct a focused, invisible beam to a subject at the speed of light and penetrate the skin to a depth of less than 1/64 of an inch. This produces an escalating heating sensation that becomes intolerable in seconds, and forces the subject to flee. The sensation immediately ceases when the individual moves out of the beam or when the system operator turns it off. Despite this sensation, the beam does not cause injury because of the shallow penetration depth of energy at this wavelength and the low energy levels used.
Trading in options on the SPADE Defense Index [Amex: DXS] have begun on the American Stock Exchange. The SPADE index is comprised of publicly traded companies in the defense, homeland security, and space marketplace. The options will trade on the February expiration cycle, and the specialist will be Susquehanna Investment Group.
AAI Corp. in Hunt Valley, MD received a sole-source $9.9 million modification to a cost-plus-fixed-fee contract for engineering services for the RQ-7 Shadow 200 tactical unmanned aerial vehicle system. Work will be performed in Hunt Valley, MD and is expected to be complete by April 30, 2008. This was a sole source contract initiated on Feb. 17, 2003. The Army Aviation and Missile Command, Huntsville, AL issued the contract (DAAH01-03-C-0074).
General Dynamics Land Systems in Sterling Heights, MI received a sole-source $8.2 million cost-plus-fixed-fee and cost-plus-incentive-fee contract for unique spares for the M1A2 SEP (system enhancement package) Abrams Tank, and M2/M3 Bradley Fighting Vehicles. Work will be performed in Sterling Heights, Mich. (10%), Killeen, Texas (85%), and Southwest Asia (5%), and is expected to be complete by April 30, 2010. This was a sole source contract initiated on April 14, 2004. The Army Tank-Automotive and Armaments Command, Rock Island, Ill issued the contract (W52H09-05-C-0089).