Contracts for October 20, 2021

On the same subject

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  September 25, 2020 | International, C4ISR, Security

  Boeing assembles team to bid for next-gen missile defense interceptor

  Jen Judson WASHINGTON ― Boeing has assembled a team with General Atomics Electromagnetic Systems and Aerojet Rocketdyne to bid to build the Missile Defense Agency's Next Generation Interceptor (NGI). The agency decided last year to scrap its plans to redesign the kill vehicle of its current Ground-Based Interceptors (GBI) that is part of the Ground-Based Midcourse Defense (GMD) system designed to defend the homeland against possible intercontinental ballistic missiles from North Korea and Iran. The MDA is holding a competition instead to design a brand new interceptor for the GMD system. The company has an extensive history with the GMD system in place at Fort Greely, Alaska, and Vandenberg Air Force Base, California, having held the development and sustainment contract for years. That contract is set to expire in 2023 and MDA is weighing options to break up that contract to foster competition that promotes increased capability. “The Boeing-led team will deliver critical technology to enhance our homeland missile defense,” Norm Tew, Boeing Missile and Weapon Systems vice president, said in a Sept. 24 statement. “Combined, we bring decades of expertise in proven missile and weapon systems.” An NGI “requires a new way of thinking supported by a proven ability to deliver pioneering solutions,” Scott Forney, president of GA-EMS, said in a separate company statement issued Sept. 24. “We are excited to partner with Boeing to deliver the disruptive technologies needed to help MDA rapidly deploy an interceptor system that bolsters the nation's missile defense network and ensures that the U.S., our allies, and partner nations maintain military overmatch against ever evolving threats from adversaries.” Aerojet Rocketdyne will supply the propulsion system. “As the country's premier hit-to-kill propulsion provider, we're able to deliver low-cost, high-performance systems by leveraging our skilled workforce and strategic investments in innovative technology and materials,” Eileen Drake, Aerojet Rocketdyne CEO, said in the Boeing statement. Boeing reports the team submitted its NGI offering to MDA on Aug. 12. Also according to the statement, Northrop Grumman will serve as a “component supplier” on the Boeing team. Northrop is also teaming up separately with Raytheon to compete against the Boeing team and Lockheed Martin. Raytheon was the developer of the now-canceled RKV. MDA aims to downselect to two companies later this year, who will then compete for the right to build the interceptor. Proposals were due July 31, but MDA noted in its request for proposals that there may be some give in that schedule due to the ongoing COVID-19 coronavirus pandemic. The agency requested $664.1 million in fiscal year 2021 for the NGI program, as part of a $4.9 billion five-year budget plan. https://www.defensenews.com/2020/09/24/boeing-assembles-team-to-bid-for-next-gen-missile-defense-interceptor/

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  June 17, 2020 | International, Aerospace, C4ISR

  Raytheon Intelligence and Space selected to participate in development of the Advanced Battle Management System

  Arlington, Va., June 15, 2020 /PRNewswire/ -- Raytheon Intelligence and Space, a Raytheon Technologies business (NYSE: RTX), was awarded a multiple award IDIQ to participate in the Air Force's development of the Advanced Battle Management System, a future command and control network that will connect military platforms across the globe, giving military commanders the ability to make decisions faster. Under a multiple award, IDIQ contract valued up to $950 million over the next five years with options beyond, RI&S will participate in the support of the maturation, demonstration and proliferation of capability across platforms and domains to enable Joint All Domain Command and Control (JADC2). "ABMS will transform the future battlespace for the U.S. Air Force by delivering the right data at the right time to the right people so they can make the right decisions fast," said Barbara Borgonovi, vice president of Intelligence, Surveillance and Reconnaissance Systems, at Raytheon Intelligence & Space. "This is the first step to delivering the Air Force's vision of JADC2, which will link capabilities across all domains – air, land, sea, cyber and space." To support this effort, RI&S has the opportunity to contribute open systems design, modern software and algorithm development for the future system. Under the terms of the multiple award contract, the Air Force will run competitions under each category that will be issued as task and delivery orders. RI&S will be supported by Raytheon Missiles & Defense. About Raytheon Intelligence & Space Raytheon Intelligence & Space delivers the disruptive technologies our customers need to succeed in any domain, against any challenge. A developer of advanced sensors, training, and cyber and software solutions, Raytheon Intelligence & Space provides a decisive advantage to civil, military and commercial customers in more than 40 countries around the world. Headquartered in Arlington, Virginia, the business generated $15 billion in pro forma annual revenue in 2019 and has 39,000 employees worldwide. Raytheon Intelligence & Space is one of four businesses that form Raytheon Technologies Corporation. About Raytheon Technologies Raytheon Technologies Corporation is an aerospace and defense company that provides advanced systems and services for commercial, military and government customers worldwide. It comprises four industry-leading businesses – Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space and Raytheon Missiles & Defense. Its 195,000 employees enable the company to operate at the edge of known science as they imagine and deliver solutions that push the boundaries in quantum physics, electric propulsion, directed energy, hypersonics, avionics and cybersecurity. The company, formed in 2020 through the combination of Raytheon Company and the United Technologies Corporation aerospace businesses, is headquartered in Waltham, Massachusetts. Media Contact Tamar Brill +1 520. 269.5697 Tamar.Brill@rtx.com SOURCE Raytheon Technologies View source version on Raytheon Company,: https://raytheon.mediaroom.com/2020-06-15-Raytheon-Intelligence-Space-selected-to-participate-in-development-of-the-Advanced-Battle-Management-System

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  November 17, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Why defense firms need to get systematic about M&A — big and small

  By: Eric Chewning and Frank Coleman III After years of growth, defense budgets will likely flatten (or decline). In such a financial environment, the U.S. Department of Defense will consider trade-offs between funding modernization, sustaining legacy equipment and preserving force structure. These hard choices will be informed by the DoD's strategic acquisition priorities, which will likely continue to reflect the need for innovation around leading-edge capabilities in areas like space, C5ISR, long-range precision fires, unmanned vehicles and artificial intelligence. To support these evolving mission requirements, the defense industry will need to ensure the industrial base is able to deliver technological advantage. This requires attracting world-class talent as well as the necessary financial capital to operate global industrial enterprises. Attracting these resources requires continued value creation through growth and return on invested capital improvements. But in a down budget environment, where is this growth to come from? While many will think organic growth is the best value-creating option (and often is), the answer also lies in augmenting a classic portfolio strategy with a systematic approach to transactions. Mergers and acquisitions are a proven growth accelerant for defense companies, and have generated superior shareholder returns and greater resilience for companies that have pursued it systematically. At first glance, this may simply seem like an obvious description of recent history. The aerospace and defense sector, after all, has seen rapid consolidation in the last five years, with deals worth $358 billion struck between 2015 and 2019, three times the total between 2010 and 2014. The problem for defense companies looking for more of the same is that this wave of consolidation now appears to have run its course. The combined market value of the top five defense hardware players is now more than four times that of the next five; so even as further mega-deals are theoretically possible, they will be increasingly difficult to execute, underscoring the value of programmatic M&A. Distinct from selective or organic deal-making approaches, programmatic M&A involves a company conducting two or more small or midsized deals per year, with an aggregate value greater than 15 percent of its market capitalization over five years, that align with their overall corporate strategy (which is hopefully linked to the “fast streams” of growth in the budget (see exhibit below)). These deals get choreographed around a specific business case, such as scaling or integrating vital digital capabilities, and are rooted in a disciplined appraisal of transactions. In the defense industry, programmatic M&A should be deployed against a strategy supported by the customer's need for innovation, lower costs and better mission outcomes for the war fighter. Our analysis shows that over the last decade, few defense companies took a programmatic approach to M&A. Those who did outperformed their peers in total shareholder returns by 10.4 percent. M&A was also an important key to resilience during the last defense spending downturn in 2007-2011: The top quintile of outperforming companies, as well as optimizing cash and flexing capex, used it as an opportunity to grow less cyclical parts of the business and build digital capabilities. Defense companies may be deterred by the current market environment, featuring stretched valuations, competition from institutional capital and a squeeze on mid-tier players. They may be cautious about the challenge of integrating smaller nondefense acquisitions into company processes and culture — a process that is easier to get wrong than right to be sure. The very complexity of these circumstances creates opportunities for bold players to differentiate themselves from their peers, align their strategies with national defense priorities and add significant value for shareholders. When done well, programmatic M&A can form a central pillar of their growth strategy. With a proactive approach to deal sourcing, holistic diligence, and in-house execution and integration expertise, companies can establish M&A as a critical capability and avoid the risks of reactive, one-off projects. In the challenging environment that confronts the defense industry today, those who act boldly will succeed in creating enduring businesses that can adapt to the evolving needs of the national defense. Eric Chewning and Frank Coleman III are partners at McKinsey and Company. Chewning previously served as chief of staff in the Office of the Secretary of Defense, and before that as the Pentagon's industrial chief. https://www.defensenews.com/opinion/commentary/2020/11/16/why-defense-firms-need-to-get-systematic-about-ma-big-and-small/