March 18, 2024 | International, Aerospace
March 26, 2020 | International, C4ISR
BAE execs explain the thinking behind their latest acquisition
By: Mark Pomerleau
In late January, Arlington, Virginia-based BAE Systems Inc. announced two acquisitions to bolster its electronic systems sector, a move that reflected a combined investment of $2.2 billion.
The purchase included $1.9 billion for Collins Aerospace's GPS receivers business and $275 million for Raytheon's tactical airborne radios.
Company leaders saw an opportunity. GPS receivers could provide secure and resilient position data that would help precision-guided munitions become more accurate. Airborne tactical radios, typically installed on rotary, fixed-wing aircraft and drones, would create a new business for BAE's electronic systems sector.
The properties became available because of a proposed merger between United Technologies and Raytheon, and BAE's two top executives said they see the purchase as a way to more closely hew their businesses toward the Pentagon's long-term needs. Specifically, they point to the 2018 National Defense Strategy. A closing is dependent on the Raytheon-United Technologies merger and is expected in the first half of 2020.
C4ISRNET's Mark Pomerleau spoke recently with Jerry DeMuro, BAE's chief executive, and Tom Arseneault, company president and chief operating officer, about the thinking behind the investment.
C4ISRNET: How do you see these acquisitions fitting into BAE overall? What opportunities could this create?
Jerry DeMuro: As we look at the National Defense Strategy and we look at the service modernization priorities and where we think customers are headed in our core markets, we think that these two businesses are very relevant. We have capabilities in those areas that these properties complement very well.
Both of them happen to be very mature, well-established, strong technology-based businesses that are on the cusp of significant growth because of the relevance to the service priorities.
[It's a] unique opportunity [that] only came about because of the UTC-Raytheon merger. We were very pleased to see it [and we were] opportunistic in going after them.
Tom Arseneault: Precision and autonomy are two key things that run through the Defense Strategy and priorities in the services and the technologies that [Under Secretary of Defense for Research and Engineering] Dr. [Mike] Griffin talks about.
With autonomy, you need to know where you are. Position data is important. Secure, resilient position information. Military GPS is a critical underlying technology. With Collins, you've got a company that's been doing this for 40-plus years and a million and a half of these devices are out there going to M-Code [a new military signal used for GPS]. Autonomy, ditto. You need to know where you are ... certainly with precision-guided munitions.
You're also relying on secure communications. You need to know where you are, and you need to be able to communicate with the systems around you.
C4ISRNET: How do you see these new businesses complementing what you already have and allowing you to pursue contracts that you couldn't before?
DeMuro: We've been working for a number of years now — most people don't know — but we have a precision-guided munitions business.
We provide the seekers for the THAAD [Terminal High-Altitude Area Defense]; we provide all the smarts in terms of combining EW, precision locating and navigating in the LRASM [Long-Range Anti-
Ship] missile. We just won the [Precision Guidance Kit] contract — precision-guided mortar. We are also the provider of the high-velocity projectile and putting these kinds of capabilities in there.
It's a great fit for that business, but also in many of the other things that we produce. Combining this kind of capability gives us a whole new market that we can bring their capabilities to.
And the same thing applies in the radio world, software-defined radios. We can take some of those waveforms and incorporate them in devices that we have today in our C4ISR portfolio.
It's not about cost synergies; it's really about market synergies in those places where we're headed already.
C4ISRNET: Obviously, some of those capabilities, such as THAAD, are dependent on a lot of disparate systems. Does this acquisition help BAE become more interoperable with a lot of other systems?
DeMuro: Think about a product that we make today, the Link 16 [military tactical data link network].
Arseneault: We own the Link 16 waveform as part of the fundamental portfolio of our current communications business. Now we'll be able to add that family of waveforms, we'll be able to use it on these acquired radios and then vice versa.
There's a number of waveforms — software-defined radio waveforms — that come with this portfolio, that we will be able to then market out through our existing communication devices.
THAAD was more on the precision side. While THAAD, itself, is a seeker of a type, I think this is more applicable to some of the new next-generation seekers that will want to be multimodal. So it's [electro-optical/infrared], it'll be radio frequency and GPS.
[We want to] have as many opportunities to get a really good sense of what's driving precision. With a million-and-a-half devices out there, there is a whole wide set of customers that these will continue to supply.
But this will also be a good opportunity for us to incorporate that technology into some of our roadmaps. SECTR [Seeker Cost Transformation] is a DARPA program, a next-generation multimodal seeker. So, GPS will be a piece of that. The idea being where seekers are more modular and so you can use a seeker on multiple weapon types and reduce costs and have greater efficiency.
C4ISRNET: Are you thinking of a card you can plug in? Or more software adaptable?
DeMuro: Chip sets, right. Combined functionality ... because it's all about size, weight and power and cost as you get out there. But the presence of these two product families, and what has to happen to upgrade them in and of itself, supports the business case. We didn't really include a lot of synergies in the business case, but we see some real opportunity there.
C4ISRNET: Can you expand on the autonomy side? I see how the GPS, and linking GPS to radio, can lead to greater precision, but where do you see opportunities on the autonomy side?
Arseneault: Autonomous systems need to know where they are. Secure, resilient position information is critical ...
DeMuro: Anti-spoofing.
Arseneault: These sorts of devices are going to find their way into many if not all of the modern autonomous systems.
Likewise, you need to be able to communicate with things around you. As we're headed to swarms, they want to know where they are. They want to know where all of their surrounding platforms are. Manned-unmanned teaming is another version of autonomy where you want to know, and you want to be able to communicate with your wingman as they call it.
DeMuro: If you think about anti-access/aerial denial, doing all of this in a contested environment — it's got to be secure. M-Code is absolutely essential to that.
These waveforms, low probability of intercept, low probability of detection and also software-defined radios are very agile in moving around to enable that in contested environments. Both of these properties help accomplish that.
C4ISRNET: You mentioned the National Defense Strategy; what role do these non-kinetic capabilities play in future conflicts?
DeMuro: They're foundational. If you don't have them, you can't operate in the future environment.
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December 17, 2019 | International, Aerospace, Naval, Land, C4ISR, Security
Contract Awards by US Department of Defense - December 16, 2019
DEFENSE LOGISTICS AGENCY The Boeing Co., St. Louis, Missouri, has been awarded a maximum $835,737,596 modification (P00105) exercising the five-year option period of a five-year base contract (SPRPA1-14-D-002U) with one five-year option period for performance-based support of consumable items for various aviation platforms. This is a fixed-price-incentive firm contract. Location of performance is Missouri, with a Sept. 16, 2024, performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2020 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. Sysco Hampton Roads, Suffolk, Virginia, has been awarded a maximum $90,716,317 fixed-price with economic-price-adjustment, indefinite-quantity contract for perishable and semi-perishable subsistence supplies. This was a sole-source acquisition in accordance with 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a 363-day bridge contract with no option periods. Location of performance is Virginia, with a Dec. 11, 2020, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2020 and 2021 defense working capital funds. The contracting agency is Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-20-D-3241). (Awarded Dec. 12, 2019) Pomp's Tire Service Inc., New Berlin, Wisconsin, has been awarded a maximum $15,046,656 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for pneumatic tire and wheel assemblies. This was a competitive acquisition with one offer received. This is a three-year contract with no option periods. Location of performance is Wisconsin, with a Dec. 16, 2022, performance completion date. Using military service is Army. Type of appropriation is fiscal 2020 through 2022 Army working capital funds. The contracting activity is the Defense Logistics Agency Land and Maritime, Warren, Michigan (SPRDL1-20-D-0014). Puerto Rico Industries for the Blind Corp.,** Mayaguez, Puerto Rico, has been awarded a maximum $11,036,311 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for flame resistant jackets. This was a competitive acquisition with three responses received. This is a one-year base contract with four one-year option periods. Location of performance is Puerto Rico, with a Dec. 15, 2020, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2020 through 2021 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-20-D-1219). UPDATE: Atlantic Diving Supply Inc., doing business as ADS Inc., Virginia Beach, Virginia (SPE8EC-20-D-0052), has been added as an awardee to the multiple award contract issued against solicitation SPE8EC-17-R-0005 announced April 5, 2017. ARMY Johnson Controls Building Automation Systems LLC, Huntsville, Alabama, was awarded a $400,000,000 firm-fixed-price contract for utility monitoring and control systems. Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 19, 2024. U.S. Army Corps of Engineers, Huntsville, Alabama, is the contracting activity (W912DY-20-D-0041). Lockheed Martin Corp., Orlando, Florida, was awarded a $64,736,518 modification (P00031) to contract W58RGZ-16-C-0008 for the Modernized Target Acquisition Designation Sight Pilot Night Vision Sensor Performance Based Logistics program sustainment, support elements, system components, test equipment and the supply retrograde infrastructure. Work will be performed in Orlando, Florida, with an estimated completion date of Dec. 31, 2020. Fiscal 2020 Army working capital funds in the amount of $64,736,518 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. Attain LLC,* McLean, Virginia, was awarded a $30,492,418 modification (BA07 27) to contract W91QUZ-11-D-0016 to acquire and retain contractor employees with technical experience. Work will be performed in Picatinny Arsenal, New Jersey, with an estimated completion date of Dec. 31, 2020. Fiscal 2020 cost-plus-fixed-fee funds in the amount of $ 8,174,474 other procurement, Army funds were obligated at the time of the award. U.S. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity. MGS Construction Services Inc.,* Sallisaw, Oklahoma (W911SA-20-D-2000); Ryan Herring Construction Inc.,* Lawton, Oklahoma (W911SA-20-D-2001); and A&J Construction Management LLC,* Springdale, Arizona (W911SA-20-D-2002) will compete for each order of the $15,000,000 firm-fixed-price contract for parts, labor, tools, equipment, materials, transportation and supervision necessary to perform design-build projects. Bids were solicited via the internet with eight received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 15, 2024. U.S. Army Mission and Installation Contracting Command, Fort McCoy, Wisconsin, is the contracting activity. NAVY General Dynamics Mission Systems, Pittsfield, Massachusetts, is awarded a $299,886,600 cost-plus-incentive-fee and cost-plus-fixed-fee contract (N00030-20-C-0005) for fiscal 2020 through 2023 U.S. and United Kingdom Trident II (D-5) Fleet Ballistic Missile Submarines Fire Control System, Guided Missile Submarines Attack Weapon Control System, and Support Equipment Rework Facility support. Work will be performed in Pittsfield, Massachusetts (90%); Kings Bay, Georgia (3.0%); Bangor, Washington (2.0%); Dahlgren, Virginia (2.0%); Cape Canaveral, Florida (1.0%); Puget Sound Naval Shipyard, Washington (1.0%); and Norfolk Naval Shipyard, Virginia (1.0%). Work is expected to be completed Dec. 30, 2024. Fiscal 2020 operations and maintenance (Navy) funds in the amount of $9,061,163, fiscal 2020 other procurement (Navy) funds in the amount of $14,907,880, fiscal 2019 research, development, test and evaluation (Navy) funds in the amount of $1,006,230, and United Kingdom funds in the amount of $8,890,232 are being obligated on this award. Of this amount, $10,067,393 will expire at the end of the current fiscal year. This contract is being awarded to the contractor on a sole source basis in accordance to 10 U.S. Code 2304(c)(1) and (4) and was previously synopsized on the Federal Business Opportunities website. Strategic Systems Programs, Washington, District of Columbia, is the contracting activity. Lockheed Martin, Manassas, Virginia, is awarded a $27,681,322 cost-plus-fixed-fee and cost-only modification to previously-awarded contract N00024-19-C-6400 to exercise options for systems engineering and integration on Navy submarines. This option exercise is for engineering and technical services and includes all material travel, subsistence and incidental material in support of those services. Work will be performed in Manassas, Virginia (68%); Groton, Connecticut (10%); Waterford, Connecticut (10%); Middletown, Rhode Island (7%); and Newport, Rhode Island (5%), and is expected to be completed by December 2020. Fiscal 2018 shipbuilding and conversion (Navy) and fiscal 2020 research, development, test and evaluation funding in the amount of $7,198,430 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Motorola Solutions Inc., Chicago, Illinois, is awarded a $23,803,734 firm-fixed-price contract for lifecycle sustainment of the enterprise land mobile radio system for Naval Facilities Engineering Command anti-terrorism/force protection ashore program systems at various Navy installations worldwide. The work to be performed provides for preventive maintenance of hardware and software; response and resolution of service calls for corrective maintenance to include equipment repair, overhaul, or replacement, asset and configuration management, password management and software upgrade installation. The contract also contains four unexercised options, which if exercised would increase cumulative contract value to $93,614,301. Work will be performed worldwide, and is expected to be completed by December 2020. If all options are exercised, work will continue through June 2023. Fiscal 2020 operations and maintenance, (Navy) contract funds in the amount of $23,803,734 are obligated on this award and will expire at the end of the current fiscal year. This contract was solicited on a sole-source basis. Statutory authority for the use of other than full and open competition is found at 10 U.S. Code 2304 (c)(1) as implemented by Federal Acquisition Regulation 6.302-1(iii), only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Facilities Engineering and Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity (N39430-20-C-2214). AIR FORCE ViaSat Inc., Carlsbad, California, has been awarded a $93,000,000 indefinite-delivery/indefinite-quantity contract to provide AN/PRC-161 Handheld Link 16 radios, ancillaries and associated training to special warfare operators. Work will be performed at Carlsbad, California, and is expected to be completed by Dec. 31, 2023. This contract is awarded on a non-competitive basis. Fiscal 2020 other procurement funds are being used and no funds are being obligated at the time of the award. The Air Force Life Cycle Management Center, Wright Patterson Air Force Base, Ohio, is the contracting activity (FA8629-20-D-5000). Able Aerospace Services Inc., Mesa, Arizona, has been awarded a $9,405,053 requirements contract for the overhaul of the dynamic components on the TH-1H helicopter. This contract provides for the overhaul of the dynamic components associated with the TH-1H helicopter which is used to train and develop pilot skills. The dynamic components provide power-train and aerodynamic functionality to the flight characteristics of the aircraft. Work will be performed at Mesa, Arizona, and is expected to be completed by Dec 15, 2024. This award is the result of a competitive acquisition and one offer was received. Fiscal 2020 defense working capital funds are being used and no funds are being obligated at the time of the award. The Air Force Sustainment Center, Robins Air Force Base, Georgia, is the contracting activity (FA8524-20-D-0004). Booz Allen Hamilton Inc., McLean, Virginia, has been awarded a not-to-exceed $9,111,111 predominantly firm-fixed-price undefinitized contract to provide technical security team support services in support of the Pakistan F-16 program. Work will be performed in Pakistan and is expected to be complete by June 18, 2020. This contract involves 100% foreign military sales to Pakistan. This award is the result of a sole-source acquisition. Foreign military sales funds of $4,464,444 are being obligated at the time of award. The Air Force Life Cycle Management Center, Air Force Security Assistance and Cooperation Directorate, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8630-20-C-5020). DEFENSE HEALTH AGENCY Cape Fox Facilities Services LLC, Manassas, Virginia, was awarded a three-year contract (one-year base and two option periods) with an estimated value of $19,500,300. This contract supports the Defense Health Agency, Deputy Assistant Director for Information Operations, Solutions Delivery Division. The contractor shall perform all activities within the scope of this contract under the construct of the Information Technology Infrastructure Library (ITIL), specifically the service operation and service transition domains. This initiative supports all operations and maintenance activities for the applications listed below under the ITIL construct. The seven applications are as follows: MHS Management Analysis and Reporting Tool, Patient Encounter Processing and Reporting, Electronic Surveillance System for the Early Notification of Community-based Epidemics, Protected Health Information Management Tool, Business Objects Common Services, Defense Medical Human Resources System - Internet and the Expense Assignment System. The contract was awarded on a sole source basis as authorized and in accordance with Section 8(a) of the Small Business Act (15 U.S. Code 637(a)(1)). The location of performance is inside the U.S. The base year is funded with fiscal 2020 operations and maintenance funding in the amount of $8,065,200. The Defense Health Agency, Professional Services Contracting Division, Falls Church, Virginia, is the contracting activity (HT0011-20-C-0001). MISSILE DEFENSE AGENCY The Boeing Co., Huntsville, Alabama, is being issued a $15,800,000 modification (P00024) to a previously awarded contract, HQ0277-18-C-0003. The value of this contract is increased from $62,361,210 to $78,161,210. Under this modification, the contractor will demonstrate a successful transition of fiber combined laser technology from the Massachusetts Institute of Technology–Lincoln Laboratory. The work will be performed in Huntington Beach, California. The period of performance is extended from March 31, 2020, until March 31, 2021. Fiscal 2020 research, development, test and evaluation funds in the amount of $3,000,000 are being obligated at the time of award. The Missile Defense Agency, Albuquerque, New Mexico, is the contracting activity. *Small Business **Small business in historically underutilized business zones https://www.defense.gov/Newsroom/Contracts/Contract/Article/2041268/source/GovDelivery/
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April 9, 2024 | International, Land
Assistance for Ukraine unbroken: Rheinmetall delivers additional 20 Marder infantry fighting vehicles
Rheinmetall delivers additional 20 Marder IFVs to the Ukraine. Delivery in the course of 2024. Order value in the mid double-digit million Euro range.