Lockheed Martin Maritime Systems and Sensors of Moorestown, NJ received a $7 million modification to a previously awarded contract (N00024-04-C-5144) for Japan Aegis Modernization Lifetime Support efforts for Kongo and Atago class ships under the U.S. Foreign Military Sales Program (100% for Japan).
Perot Systems subsidiary QSS Group received a $37 million, 3-year contract to supply IT infrastructure and support services to the Army’s Fort Monmouth in NJ. Perot Systems heads a team that includes Harris IT Services and General Dynamics Information Technology that had provided IT infrastructure and consolidation support services to Fort Monmouth for 2 1/2 years, helping transition the base to a single Directorate of Information Management (DOIM), which provides information management services to the Army facility.
DID has more on the key role Fort Monmouth plays in the Army’s Team C4ISR…
Soltek Pacific Construction in San Diego, CA received a $17.6 million firm-fixed-price task order (#10) under a previously awarded multiple award construction contract (N62473-08-D 8615) for design and construction of a Marine Corps Combined Arms Military Operations in Urban Terrain (MOUT) training facility. The complex will be located at the Marine Air Ground Task Force Training Command, Marine Corps Air Ground Combat Center in Twentynine Palms, CA. Soltek expects to complete construction by January 2011. For this task order, 5 proposals were received by the Naval Facilities Engineering Command, Southwest in San Diego, CA.
The facility will be designed to provide a training area in which Marines can develop individual and unit skills needed to fight in an urban environment. By the year 2010, 75% of the world’s population will live in urban areas, according to the Army Field Manual on Combined Arms Operations in Urban Terrain. Urban areas are expected to be the future battlefield.
International consulting firm Alix Partner recently released their 2009 Global Aerospace & Defense Review(SM), which investigated virtually all segments of the global aerospace industry, its key customers, and key issues. Their conclusion? After 5 years of strong, profitable growth, financials for virtually all segments of the aerospace industry globally are deteriorating rapidly – and the situation is likely to worsen in 2010. Extracting cash from operations will be key. Or, as Alix Managing Partner Phillip Toy puts it: “In times like these, cash is king, queen, pilot and co-pilot.”
Alix believes that the ways in which the industry is changing, and underlying business fundamentals for industry firms, are at least as important as the overall trend. Overall, industry financial-distress indicators have deteriorated by 24% since 2008. The debt/capital ratio of North American airlines in particular is a concerning statistic, and the financial state of European supplier firms also bears watching. On the defense front, continued cuts are expected past 2010, with a possible counter-trend in Asia. The biggest change, however, concerns Tier 1 and 2 suppliers, whose EBIT margins have exceeded their customers’ by an average of over 30% over the last 2 years. That power relationship is changing, and the change has important implications for industry firms up and down the supply chain.
DID is working with Alix Partners on a guest article that will discuss some of this research, and flesh out some of the study’s insights and implications for our readers (July 22/09: The article is up).
Argon ST in Fairfax, VA received $29.8 million in new contract awards for upgrades to U.S. maritime intelligence, surveillance and reconnaissance (ISR) systems. The contracts call for Argon to provide multipurpose, modular, upgradable platforms for use in the U.S. littoral battlespace. Argon ST did not disclose the U.S. military customers for the contracts.
One of the platforms being provided to the U.S. military is Argon ST’s Lighthouse transportable signal intelligence sensor system that enables improvements in signal collection density and a reduction in overall system size, according to the company. Argon ST designs, develops, and produces SIGINT sensors that seek, exploit, identify, and locate sources of RF energy, underwater sound, light, heat, and other complex phenomena.