Back to news

March 30, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Raytheon-UTC merger wins approval, pending divestitures

By: Jill Aitoro

WASHINGTON — The merger between two defense giants got the green light from the U.S. Department of Justice, under the condition that divestitures already in the works move forward and another piece of business is shed.

According to a March 26 announcement from the DOJ, United Technologies Corp. and Raytheon will need to divest Raytheon's military airborne radios business as well as UTC's military global positioning systems and large space-based optical systems businesses in order to proceed with the proposed merger.

The divestitures would satisfy a proposed settlement from the department's Antitrust Division of a civil antitrust lawsuit to block the proposed Raytheon-UTC merger.

BAE Systems agreed in January to buy Collins Aerospace's military global positioning system business — which is owned by parent firm UTC — for $1.93 billion and Raytheon's airborne tactical radios business for $275 million.

“Today's settlement protects the American taxpayer by preserving competition that leads to lower costs and higher innovation in critical military and defense products,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “The merger, as originally proposed, would have eliminated competition in the supply of military airborne radios and military GPS systems, and would have positioned the merged firm to harm rivals capable of making key components for reconnaissance satellites. These horizontal and vertical concerns are resolved by the Division's structural remedy, which includes the divestiture of three separate business units.”

Under the terms of the proposed settlement, the companies need to divest Raytheon's military airborne radios business, including facilities in Fort Wayne, Indiana, and Largo, Florida; as well as UTC's military GPS business to BAE Systems or another approved acquirer.

The proposed settlement would also require the divestiture of UTC's optical systems business, including a facility in Danbury, Connecticut, to an approved acquirer.

Raytheon and UTC announced in June 2019 plans to officially merge into a new entity called Raytheon Technologies Corporation, with the deal at the time expected to close during the first half of 2020.

https://www.defensenews.com/industry/2020/03/27/raytheon-utc-look-to-shed-segments-to-win-merger-approval

On the same subject

  • Lockheed set to integrate base kit for US Army’s combat vehicle protection system

    February 17, 2021 | International, Land

    Lockheed set to integrate base kit for US Army’s combat vehicle protection system

    By: Jen Judson WASHINGTON — Under a recent contract award with a $30 million ceiling, Lockheed Martin will begin integrating and formally testing its open-architecture processor designed to control the U.S. Army's future combat vehicle protection system, the company announced Feb. 16. The Army is determining the specific plans and schedules for integration and testing of Lockheed's base kit for its Modular Active Protection System, or MAPS, that ties vehicle sensors and countermeasures into a common framework to detect, track and destroy rocket-propelled grenades and anti-tank guided missiles aimed at combat vehicles. Lockheed is supporting those activities starting later this year through 2023, David Rohall, program manager for advanced ground vehicle systems at Lockheed Martin Missiles and Fire Control, told Defense News. The Army has not yet finalized dates for the formal testing. Lockheed received an initial award of $1.5 million through an other transaction authority agreement following a competitive process in December 2020, but has since received $3 million of additional incremental funding, according to Rohall. As part of the contract, Lockheed will develop the MAPS base kit hardware and software; perform platform integration; and run on-vehicle, live-fire demonstrations over a 36-month period. Funding will be incrementally issued throughout the period of performance, Rohall said. The base kit consists of the MAPS open-architecture controller, application software, user interface, power management distribution system and a network switch, Rohall explained. The software identifies incoming threats and deploys the most suitable countermeasure to defeat them, he added. “In an Army lab test, one MAPS-enabled active protection system actually responded faster to threats than its standalone version, thanks to the higher network speeds and greater processor power the MAPS controller offers,” Rohall said. The Army is working with other industry partners to bring in sensors and countermeasures that are compliant with the MAPS architecture. Lockheed has been working with the Army on solutions for a future vehicle protection system since 2014. The service initally awarded the MAPS software project to Raytheon and the hardware effort to Lockheed. But in 2017, the service transferred the software development to Lockheed. The Army, Lockheed and other industry partners have been working to prepare sensors and countermeasures controlled by the MAPS base kit for lab and live-fire demonstrations, including soft-kill systems like Northrop Grumman's MEOS, BAE Systems' Raven and Ariel Photonics' CLOUD, as well as hard-kill systems including Artis Corporation's Iron Curtain and Elbit System's Iron Fist. Sensors include Northrop's PICS IR sensor and Iron Curtain's L3 Mustang, as well as several laser warning systems. Lockheed will work with the Army for integration and testing on the Bradley Infantry Fighting Vehicle, the M1 Abrams tank, the Armored Multipurpose Vehicle and the Stryker combat vehicle ahead of a transition to the Vehicle Protection System program, Rohall said. “We continue to support development activities. We expect to be back in the field this year to support testing on multiple combat vehicles equipped with laser warning receivers that are new to the MAPS architecture,” Rohall said. The upcoming integration and testing is the last step for the base kit ahead of fielding the future Vehicle Protection System for ground combat vehicles. The effort will validate the Vehicle Protection System base kit capability for an initial production decision. The contract also covers developing capabilities beyond active protection, Lockheed said, to include underbelly blast protection. The Army has spent years developing a future Vehicle Protection System, and has had several attempts — one successful, others not — to field interim active protection systems onto current combat vehicles. The service has already fielded Rafael's Trophy active protection system on some Abrams tanks in Europe. The Army had also chosen IMI's Iron Fist for the Bradley but has struggled with technical issues and funding, and the program's future is delayed and uncertain. The service also had difficulty finding an interim candidate for its Stryker vehicle and hit a dead end with the effort in 2019. Iron Curtain was seen as the front-runner for Stryker, but due to system maturity, the service decided not proceed with its qualification efforts. https://www.defensenews.com/land/2021/02/16/lockheed-begins-integration-of-base-kit-for-us-armys-combat-vehicle-protection-system/

  • BAE shipyard sues Navy over extra work on USS Bataan

    September 23, 2020 | International, Naval

    BAE shipyard sues Navy over extra work on USS Bataan

    DAVE RESS BAE Systems' Norfolk shipyard is suing the Navy's Mid-Atlantic Regional Maintenance Center, claiming the yard is owed nearly $1.1 million for work it did on USS Bataan. The lawsuit contends that the Navy is refusing to pay for extra work that BAE and its subcontractors had to perform because the Navy didn't provide necessary supplies or complete needed work while Bataan was in the BAE shipyard. BAE won a $51.6 million, fixed-price contract to repair and modernize Bataan in September 2017. It was originally supposed to complete the work in July 2018, but that was extended to November 2018. When the ship was not delivered by then, the Navy declared BAE in default of the contract. BAE continued to work on the ship until March 2019. The lawsuit alleges that the Navy's challenges securing funds for additional work delayed completion. In addition, the lawsuit says the Navy's continued dumping of liquids into the bilge spaces prevented BAE from completing cleaning and pumping work. It also alleges that the Navy also expanded the work required, as when it directed the yard to add multiple pendant and wire installations on the Flight Deck Safety Nets. BAE said most of its claims for payment for the additional work were denied by the Navy's Contracting Officer in a formal final decision, prompting the shipyard to sue for the funds it claims it is owed. The Navy maintenance center has not yet filed a formal response to the BAE complaint. A spokesman was not immediately available for comment. https://www.pilotonline.com/business/shipyards/dp-nw-bae-bataan-20200922-3gangsit5zgtljyo2mgdvorcx4-story.html

  • US Army discontinues Rapid Equipping Force

    October 5, 2020 | International, Land, C4ISR, Security

    US Army discontinues Rapid Equipping Force

    Jen Judson WASHINGTON — The U.S. Army has discontinued its Rapid Equipping Force stood up during the wars in Iraq and Afghanistan to get urgently needed capabilities into the field in 180 days or less. As the Army shifts from a focus on counterinsurgency operations to going up against near-peer adversaries like Russia and China across air, land, sea, cyberspace and space domains in large-scale operations, the REF's utility and mission has been in question. The service is also disbanding its Asymmetric Warfare Group. “As our focus changes to great power competition and large-scale combat operations, Army analysis indicated that the personnel and resources could best be utilized in building the operational fighting force,” an Oct. 2 Army statement read. “To ensure the value of organization's work over the past 14 years is not lost, all lessons learned will be maintained by the U.S. Army Combined Arms Center, via the Center for Army Lessons Learned, Centers of Excellence and other [Training and Doctrine Command] enterprise stakeholders.” The discontinuation won't happen overnight. Both organizations will be fully deactivated by the end of fiscal 2021 “and will transition the mission of providing immediate support to other organizations,” the statement noted. Over the past several years, the REF hung on to certain missions and continued to advocate for its relevancy. A year ago, Defense News sat down with the REF's director in a new, smaller office space at Fort Belvoir, Virginia, in a conference room surrounded by small counter-unmanned aircraft systems that it was rapidly fielded to units and considered one of its success stories. In 2017, the REF was focused on counter-drone technologies; dismounted electronic warfare equipment; tethered intelligence, surveillance and reconnaissance capabilities; and urban operations equipment including up-armored commercial vehicles. But many of those technologies have found other homes within the Army. As the service stood up its new security force assistance brigades, the REF expected a surge in work to support the needs of those units in the field as they deployed. The REF played a small role at the time, providing the first SFAB with a few items it needed ahead of deployment such as communications gear and an item that assisted the unit with indirect fires. Last year, the REF was highlighting its nearly 10-year-old Expeditionary Lab, a 3D-printing trailer that can be deployed downrange to solve problems for units operating in austere environments. Col. Joe Bookard, who is still the REF's director, told Defense News at the time that the REF would continue to fill the niche of urgently supplying soldiers with capabilities to meet immediate needs while they are deployed. He said that, in a way, the REF has been doing what Army Futures Command is doing now, but on a smaller scale: providing capabilities that are rapidly procured to a small number of soldiers for evaluation, and then refining those capabilities as needed. In 2019, the REF addressed 400 requirements sent from combatant commanders to address operational capability gaps, Bookard said. Among some of the recent success stories is the tiny Black Hornet, an unmanned aircraft system that is now a program of record and was fielded as the Soldier Borne Sensor. The REF was also working to transition two hand-held counter-UAS capabilities — the DroneBuster and the Drone Defender — to the larger force as official programs. https://www.defensenews.com/land/2020/10/02/army-discontinues-rapid-equipping-force/

All news