Back to news

July 21, 2020 | International, Aerospace

Airbus gets $630 million deal under UK military’s Skynet 6 push

By:

LONDON — The first element of a likely $7.5 billion upgrade of the British armed forces' satellite-telecommunications capabilities has finally been signed by the Ministry of Defence and Airbus Defence and Space.

The deal, worth more than $630 million, will see Airbus build a new telecommunications satellite as a stop gap to bolster military capabilities ahead of the introduction of a new generation of space craft scheduled to start entering service towards the end of the decade.

Airbus and the MoD have been locked in negotiation over the deal to construct the satellite, known as Skynet 6A, since the company was nominated in 2017, without a competition, as the preferred supplier.

Under the terms of the deal the satellite, based on Airbus' Eurostar Neo spacecraft, will be developed, assembled and tested in the UK. Planned launch date is 2025.

In a statement Airbus said the contract also covers technology development programs, new secure telemetry, tracking and command systems, launch, in-orbit testing and ground segment updates to the current Skynet 5 system.

At one point defense officials here were sufficiently concerned about the drawn-out negotiations for Skynet 6A delaying the space crafts in-service date that they a contract with Airbus to start work on long-lead items ahead of the main deal being sealed.

The deal will supplement a fleet of existing spacecraft built by Airbus as part of the Skynet 5 space telecommunications network operated by the company under a private finance initiative (PFI) deal which has been in operation since 2003.

Operation of the Skynet ground stations was also included in the deal. The PFI, including ground station element, ends in 2022.

A competition to run the ground stations as part of the wider Skynet 6 program is already in play, with Airbus, Babcock, BT and Serco all bidding to secure the contract for what is called the Service Delivery Wrap.

The third main element of Skynet 6, known as Enduring Capability,will see industry compete to replace existing Skynet 5 satellites with a fleet of new generation beyond line of sight communication assets. The early stages of that competition is already underway.

In-service date for the first of the new communications assets is around 2028.

Announcing the satellite deal 24 hours ahead of the launch of the virtual Farnborough air show getting underway July 20, UK Defence Secretary Ben Wallace said the “newest contested frontier is space and so we need to provide resilience and better communications for our forces. Skynet 6A is one of many solutions we shall be investing in over the next decade. This government recognizes the urgent need to defend and promote space capabilities.”

“British defense must continue to innovate and transform, particularly in cyber and space,” Wallace said.

Confirmation of the satellite deal by Wallace comes just two weeks after the British government took a $503 million stake alongside Indian company Bharti Global in the rescue of failed broadband constellation supplier OneWeb.

OneWeb is based in the UK but its satellites are built in Florida in a partnership between Airbus and OneWeb. So far, 74 satellites out of an initial requirement for 648 have been launched.

Having been denied access by the European Union to the precise military navigational signals provided by their Galileo satellites as a result of Brexit, the British are hoping they can develop the small spacecraft operated by OneWeb to provide military-grade positioning, navigation and timing data for the armed forces.

OneWeb satellites could also find themselves developed for use by the British military as part of Skynet 6′s Enduring Capability requirement, said an industry executive here, who asked not to be named.

Space is expected to have top billing alongside cyber, artificial intelligence and other cutting-edge technologies in the upcoming integrated defense, security and foreign policy review being conducted by Prime Minister Boris Johnson and his advisors.

Creation of a Space Command is likely to figure in a space defense policy being pulled together by the MoD.

The bones of that policy could be presented to four-star-level officials in the next few weeks.

https://www.defensenews.com/global/europe/2020/07/20/airbus-gets-630-million-deal-under-uk-militarys-skynet-6-push

On the same subject

  • Pentagon’s Second Multibillion Cloud Contract to Be Bid in Coming Months

    June 11, 2018 | International, C4ISR

    Pentagon’s Second Multibillion Cloud Contract to Be Bid in Coming Months

    Officials say the Defense Department's multibillion Defense Enterprise Office Solutions contract is expected to be bid out in the fourth quarter of this fiscal year. Much of the oxygen in the federal contracting community has gone to the Pentagon's Joint Enterprise Defense Infrastructure contract in recent months, but the Pentagon is very close to bidding out a second major cloud contract that may rival it in size. Defense officials said last month that the Defense Enterprise Office Solution acquisition, valued at approximately $8 billion, could be bid out later this month, with an expected award issued by the second quarter of 2019. The contract will have a five-year base period with five one-year options. DEOS is the Pentagon's attempt to “unify and modernize” some of its legacy systems, including enterprise email, collaboration services, voice and video services, messaging, content management and other productivity capabilities for more than 3.5 million users. Brian Herman, the Defense Information Systems Agency's unified capabilities portfolio manager, said the Pentagon isn't interested in developing new capabilities but rather wants to take advantage of existing commercial capabilities in use across industry today. “Our goal is to take the capabilities that are available now, change the way we work to take advantage of these commercial services, and receive all of the upgrades and improvements that industry brings to their commercial customers,” said Herman, speaking at the Armed Forces Communications and Electronics Association's Defensive Cyber Operations Symposium in Baltimore May 16. In the commercial world, many companies have opted for cloud-based delivery of collaborative and email services. Delivered at scale across the Defense Department's massive enterprise, Herman said the approach could significantly reduce costs and improve security and efficiency. DEOS could eventually replace the Defense Enterprise Email, Defense Collaboration Services, and Defense Enterprise Portal Service, and potentially other legacy systems currently maintained by the Pentagon's IT wing. “We've had feedback from the DOD management, financial, and technical leaders. They've looked at the services used by [DOD agencies] and said, ‘You need to change the way you use these services. It's no longer necessary for every application to be on your desktop. Perhaps you can have web-based access to some of these capabilities and both improve the security and reduce the cost of these capabilities,” Herman said. DEOS will offer services through the Pentagon's unclassified and classified networks, meaning potential bidders must have provisional authorization to operate at Impact Level 5 to bid on it. Currently, only a few cloud service providers, including Microsoft, IBM, Amazon Web Services and General Dynamics, have achieved this status. Meanwhile, the Pentagon has not yet released a final solicitation for JEDI, which some industry estimates have pegged at $10 billion. The contract has drawn scrutiny from industry and Congress because of the Defense Department's decision to award it to a single cloud service provider. Initially expected to be released in mid-May for industry consideration, it has been delayed indefinitely. https://www.nextgov.com/it-modernization/2018/06/pentagons-second-multibillion-cloud-contract-be-bid-coming-months/148733/

  • US aid will boost Ukraine, but doubts remain over 2025 supplies
  • Elbit Systems Awarded $35 Million to Equip Montenegro’s 4X4 Vehicles with Remote Control Weapon Stations

    December 18, 2019 | International, Land, C4ISR

    Elbit Systems Awarded $35 Million to Equip Montenegro’s 4X4 Vehicles with Remote Control Weapon Stations

    Haifa, Israel, December 16, 2019 – Elbit Systems Ltd. (NASDAQ:ESLT and TASE: ESLT) ("Elbit Systems") announced today that following a contract signed between the Israeli Ministry of Defense and the Ministry of Defense of Montenegro, it was awarded approximately $35 million to supply the Montenegrin Armed Forces with Remote Controlled Weapon Stations (“RCWS”) for the new Oshkosh Defense (“Oshkosh”) 4X4 Joint Light Tactical Vehicles (“JLTV”). In this contract Elbit Systems will perform full integration of the RCWS onboard, the JLTV over a three-year period and will provide logistic support for a seven-year period. Elbit Systems 12.7mm RCWS is lightweight, low silhouette, dual axis and stabilized, mounted externally onboard armored vehicles. The RCWS offers accurate firing on-the-move and is operated via handles and Smart Displays by the gunner from within the vehicle, providing full protection for the vehicles' crew who are safely located inside. Yehuda (Udi) Vered, General Manager of Elbit Systems Land, commented: “We are very proud to introduce our RCWS to Montenegro's Armed Forces. This recent award further expands our NATO customer base and strengthens our growing cooperation with Oshkosh. We are witnessing a growing demand worldwide for our RCWS, of which many hundreds are already operational onboard a range of land and naval platforms, and we trust that further customers will follow in acquiring our advanced and mature weapon stations”. About Elbit Systems Elbit Systems Ltd. is an international high technology company engaged in a wide range of defense, homeland security and commercial programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land, and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned aircraft systems, advanced electro-optics, electro-optic space systems, EW suites, signal intelligence systems, data links and communications systems, radios and cyber-based systems and munitions. The Company also focuses on the upgrading of existing platforms, developing new technologies for defense, homeland security and commercial applications and providing a range of support services, including training and simulation systems. For additional information, visit: [elbitsystems.com]elbitsystems.com, follow us on Twitter or visit our official Youtube Channel. This press release contains forward‑looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively the Company), to the extent such statements do not relate to historical or current fact. Forward-looking statements are based on management's expectations, estimates, projections and assumptions. Forward‑looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results, performance and trends may differ materially from these forward‑looking statements due to a variety of factors, including, without limitation: scope and length of customer contracts; governmental regulations and approvals; changes in governmental budgeting priorities; general market, political and economic conditions in the countries in which the Company operates or sells, including Israel and the United States among others; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; and the outcome of legal and/or regulatory proceedings. The factors listed above are not all-inclusive, and further information is contained in Elbit Systems Ltd.'s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission. All forward‑looking statements speak only as of the date of this release. The Company does not undertake to update its forward-looking statements. Elbit Systems Ltd., its logo, brand, product, service and process names appearing in this Press Release are the trademarks or service marks of Elbit Systems Ltd. or its affiliated companies. All other brand, product, service and process names appearing are the trademarks of their respective holders. Reference to or use of a product, service or process other than those of Elbit Systems Ltd. does not imply recommendation, approval, affiliation or sponsorship of that product, service or process by Elbit Systems Ltd. Nothing contained herein shall be construed as conferring by implication, estoppel or otherwise any license or right under any patent, copyright, trademark or other intellectual property right of Elbit Systems Ltd. or any third party, except as expressly granted herein. Visit our Press Relations website for background materials and information regarding Elbit Systems fields of activity. David Vaaknin Vice President, Head of Corporate Communications Tel: 972-77-2946691 Cell: 972-52-8000403 E-Mail: david.vaaknin@elbitsystems.com Dana Tal-Noyman Manager International Corporate Communications Tel: 972-77-294-8809 Cell: 972-54-9998809 E-Mail: dana.tal@elbitsystems.com https://www.epicos.com/article/521991/elbit-systems-awarded-35-million-equip-montenegros-4x4-vehicles-remote-control-weapon

All news