In the wake of its $4 billion acquisition of American armored vehicle and defense manufacturer United Defense LP, BAE Systems has reported a 35% rise in pre-tax profit during the first six months of the year (to GBP 426 million, or $726 million), and a rise in net profit of over 300% (GBP 318 million from 69 million). Much of the coverage appears to revolve around net numbers, or Chairman Dick Olver’s denial that BAE has any plans to sell its 20% stake in Airbus.
DID looked at the 2005 interim results in detail, and saw why not. While BAE Systems is best known for its involvement in big-ticket items like the M2/M3 Bradley, Eurofighter, Britain’s CVF future aircraft carrier, et. al., that is not where the firm’s profits come from in this interim report. Indeed, the sectors that manage these big-ticket items are relatively weak performers at the moment.
BAE Systems Information and Electronics Systems Integration Inc. in Nashau, NH, is being awarded a $5 million cost-plus-fee contract for the Littoral ASW Multi-Statistics Project for the development and testing of an advanced off board low frequency acoustic source receiver. DID has covered the USA’s changing ASW doctrine in response to the diesel sub threat and it focus on advanced sensor nets and even more unusual options; this is simply one more project as part of that broad constellation of effort.
Work will be performed in Nashau, NH, and is expected to be complete in September 2008. This contract was competitively procured under a Broad Agency Announcement Number 05-001, with more than two offers received. The Office of Naval Research, Arlington, VA issued the contract (N00014-05-C-0158).
The Naval Facilities Engineering Command (NAVFAC), Southern Division in North Charleston, SC has issued 3 task orders & modifications to Halliburton subsidiary Kellogg Brown & Root Services in Arlington, VA. These orders fall under a $500 million cost reimbursement, indefinite-delivery/ indefinite-quantity emergency construction capabilities contract made on July 26, 2004. The basic contract was competitively procured with 59 proposals solicited, three offers received and award.
These task orders are being issued for Hurricane Katrina stabilization and recovery at several key military bases in the region. Work to be performed includes the re-roofing of most buildings, barracks, debris removal from the entire base, water mitigation, mold mitigation, interior and exterior repairs to most buildings, waste treatment plants, and all incidental related work, and is expected to be complete by September 2007. The original contract (N62470-04-D-4017) is as follows:
A team led by Raytheon Company has been awarded a contract by the NOAA (National Oceanic and Atmospheric Administration) National Weather Service (NWS) to provide operations and maintenance for the Advanced Weather Interactive Processing System (AWIPS), a nationwide operational weather data analysis and dissemination system.
Raytheon estimates the value of the award, which has a five-year base period and five one-year options, to be approximately $300 million if all options are exercised. Work on the contract will focus on supporting more than 168 sites with AWIPS hardware, software, and communications.
The U.S. Navy has awarded a subsidiary of Raytheon Company a $19.9 million contract to produce high-resolution, digital imaging Shared Reconnaissance Pods (SHARP) that can withstand the hostile naval environment.
Under this contract, Raytheon Technical Services Company LLC will produce six additional SHARP systems at its Indianapolis facility for delivery to the U.S. Navy in 2006. The SHARP pod provides advanced day/night imaging and real-time data linking to the F/A-18F Super Hornet.
Northrop Grumman Systems Corp. in El Segundo, CA received a $20 million indefinite delivery/ indefinite quantity contract to provide for T-38 and F-5 Weapon Systems Engineering Services in the US. The F-5 “Tiger/ Freedom Fighter” was first fielded in 1962, as an affordable supersonic lightweight fighter that could be exported to US allies around the world. Many militaries fly them to this day. The T-38 Talon is a derivative of the F-5 used in a variety of training and support roles because of its economy of operations (recent estimates show that the F-5’s operational costs are 33% of an F/A-18’s), ease of maintenance, supersonic performance and safety record. In the USA, F-5 derivatives like the T-38 used primarily by Air Education and Training Command for undergraduate pilot and pilot instructor training, Air Combat Command, Air Mobility Command and NASA.
Work on this contract will be complete by February 2012. Solicitation began June 2005 and negotiations were completed September 2005. The Headquarters Ogden Air Logistics Center, Hill Air Force Base, UT issued the contract (FA8202-05-D-0004).
There seems to be a lot of roofing work being done lately around the US military. The Naval Facilities Engineering Command Atlantic in Norfolk, VA has issued 5 firm-fixed price, indefinite-delivery/ indefinite-quantity multiple award construction contracts with a total maximum value of $150 million over 5 years. Work to be performed provides for a variety of roofing work to include the demolition, repair and replacement of roofing systems and associated related work.
This contract was competitively procured via the NAVFAC e-solicitation website with seven offers received. The contracts were awarded to the following small business qualifiers: