Boeing recently announced the completion of its sale of its Rocketdyne Propulsion & Power business to United Technologies Corporation, effective August 2/05. Rocketdyne is primarily a rocket engine developer and builder, and provides main engines for the Space Shuttle and the Delta family of expendable launch vehicles, as well as propulsion systems for missile defense systems. The sale includes sites and assets in California, Alabama, Mississippi and Florida.
The two companies first announced the $700 million sale agreement on Feb. 22/05, and DID covered it at the time. The financial implications were disclosed with Boeing’s results for Q2/05 [PDF format]. According to those documents, Boeing Launch & Orbital Systems is expected to generate a $575 million pre-tax gain from the close of this sale. Offsetting pre-tax charges of $215 million will be recorded in Q4/05, primarily in accounting differences and eliminations, bringing the total expected pre-tax gain from the Rocketdyne sale to $360 million.
Cree Inc., in Durham, NC received a $19.7 million cost share/ technology investment agreement contract. The objective of the subject Technology Investment Agreement is to establish a domestic source to develop a manufacturing capability for Silicon Carbide Monolithic Microwave Integrated Circuit Devices, for commercial applications and next generation military radar systems. As noted in DID’s summary of DARPA’s research strategy for technlogical advantage through the next-generation semiconductor material Gallium Nitride (GaN), Silicon Carbide (SiC) will be the substrate material of choice for GaN circuits.
Cree was also the recipient of a previous SiC-related research contract, and they are teamed with Raytheon for part of DARPA’s GaN research strategy. Solicitation for this contract began in March 2005, negotiations were completed July 2005, and work will be complete by March 2010. The Air Force Research Laboratory at Wright-Patterson Air Force Base, OH issued the contract (FA8650-05-2-5507).
Colt Defense, LLC in Hartford, CT received a $52.5 million firm-fixed-price contract for 50,881 M4 Carbines. The M4 is a member of the famous M16 weapons family. It achieves over 80% commonality with its M16A2 predecessor, and is currently the standard infantry rifle for the U.S. armed forces. The M4 replaces the M16, and also replaces all M3 .45 caliber submachine guns and selected M9 pistols.
Work on this contract will be performed at Colt’s Hartford, CT facilities and is to be completed by Sept. 30, 2006. The U.S. Army Tank-automotive and Armaments Command Rock Island at Rock Island, IL issued the contract (W52H09-04-D-086).
FN Manufacturing in Columbia, SC received a $12 million firm-fixed-price-supply contract for 18,000 barrels for the M249 Squad Automatic Weapon (SAW) 5.56mm light machine gun. Three bids were solicited on June 17, 2005 and one bid was received. Work will be performed at FN Manufacturing’s Columbia, SC facilities, and will be completed on July 31, 2010. The U.S. Army Tank-automotive and Armaments Command Rock Island facility in Rock Island, IL issued the contract (W52H09-05-D-0281).
Small business qualifier Paul S. Akins Construction Inc. in Statesboro, GA won an $8.2 million firm-fixed price contract to design and construct a barracks-complex dining facility at Fort Stewart, GA. Work will be performed at Fort Stewart and is estimated to be completed by Feb. 6, 2007. There were 280 bids solicited on June 14, 2004, and 3 bids were received. The U.S. Army Engineer District in Savannah, GA issued the contract (W912HN-05-C-0049).