European private equity firm Cinven has acquired aerospace manufacturer Avio SpA from The Carlyle Group and Finmeccanica for EUR 2.57 billion, significantly surpassing the EUR 1.5-1.6 billion paid by Carlyle and Finmeccanica in September 2003 when they bought the aerospace arm of FiatAvio SpA. Carlyle owned 70% of the company, with Finmeccanica owning the remaining 30%… but Cinven’s release notes Finmeccanica’s “reinvestment” in the company so this may simply be an investment group shuffle.
The transaction is expected to close in October 2006 and is subject to the approval of the relevant competition authorities. So, who is Avio, for those who don’t know?
General Dynamics subsidiary Bath Iron Works Inc. (BIW) in Bath, Maine recently received a $115.8 million cost-plus-award-fee/ cost-plus-fixed-fee contract for DDG-1000 Zumwalt Class Destroyer detailed design, and procurement of vendor furnished information (VFI) in support of the detailed design. The total value of the detail design effort is actually $336.3 million. This initial award consists of $78.5 million funded at contract award, plus a not-to-exceed (NTE) line item for procurement of “vendor-furnished information” valued at $37.3 million, for a total of $115.8 million. Note that the maximum amount for which the government is liable under the NTE line item prior to definitization is $18.6 million, so the $115.8 million total may not be reached. The remaining detail design efforts are included in a priced option valued at $257.7 million. Work will be performed in Bath, ME and is expected to be complete by December 2008. Per the previous contract announcement, this contract was not competitively procured by the Naval Sea Systems Command in Washington DC (N00024-06-C-2303).
FLIR Systems Inc. in N. Billerica, MA received a maximum $34.9 million firm-fixed-price, indefinite-delivery/ indefinite-quantity contract for enhanced targeting sights (ETS) for the AN/PEQ-1 Special Operations Forces Laser Marker (SOFLAM) system. The ETS is a companion sight for the SOFLAM. The system uses a special image intensifier that will “see” the wavelength of a single range finding pulse, as well as the repetitive pulses of precision munitions guidance laser designating a target. The ETS increases the accuracy of the SOFLAM by allowing operators to view the laser spot and target the scene simultaneously.
Work will be performed in North Billerica, MA and is expected to be complete by August 2011. The contract was not competitively procured by the Naval Surface Warfare Systems, Crane Division in Crane IN (N00164-06-D-8582). Note: this Popular Mechanics article covering AFSOCOM may have a SOFLAM system in the main photo.
Red River Holdings in Rockville, MD received a $9.9 million firm-fixed priced contract with additional reimbursables for the time charter of MV A1C William H. Pitsenbarger (T-AK 4638), a self-sustaining ship capable of carrying containers laden with ammunition. Work will be performed with the vessel prepositioned at sea in various locations worldwide, mainly in and around Diego Garcia in the Indian Ocean, and is expected to be completed September 2007, (November 2011 with options).
The vessel us already part of Military Sealift Command’s Prepositioning Program, which will continue to operate the vessel during its contract base period, four one-year options and one two-month option. If all options are exercised, it would bring the total award amount to $54.2 million, plus additional reimbursables. This contract was competitively procured with almost 100 proposals solicited via Military Sealift Command’s Web site, and 4 offers received by Military Sealift Command in Washington, DC (N00033-06-C-3301).