Monday, March 31, 2008

Everything comes to [the prime contractor] who waits

The Times newspaper in London today reported that, "The MoD will hand control of a project to build 2 new aircraft carriers for the Royal Navy to BAE Systems in an attempt to avoid a £700m tax bill as VAT is applied to ships built by multiple companies but not to those built by only one."

Well the former DPA, now DE&S organisation (and certainly former Chief of Defence Procurement, Sir Peter Spencer) must be gagging having spent years trying to fend off BAE Systems control of the CVF project. Efforts to insert Thales, then VT-Group's Peter Macintosh to hold the line against BAES domination of the project have been erroded by, of all ironies, Value Added Tax.

All this has been somewhat bizarre given the basic fact that BAE is the UK's largest defence company. The pogroms following the joint MOD BAE disasters over Nimrod and Astute led to a fanciful notion that you could undertake major procurements and sideline the largest player.

Whilst some feel that BAE has undue influence, it has not led to a happy first five years for the project.

The DE&S team no doubt can take some solace from the fact that by injecting other capabilities and companies they may yet create something special and give a badly needed shot in the arm into the UK naval construction sector.

My own concern is with regard to the, what was, Future Surface Combatant programme to replace the backbone of the Navy - the Type 22 and Type 23 frigates. My suspicion is that a confluence of political fatigue with overseas adventures coupled with the politics of jobs, public spending and unions will lead to the Army being sidelined in favour of more Naval acquisition. Grist for the mill for constructors BAE Systems (BA), VT Group (VTG) and in-service supporters Babcock International Group (BAB).

Tuesday, March 11, 2008

DoD: Gates Accepts Resignation of CENTCOM Chief Fallon

Gates Accepts Resignation of CENTCOM Chief Fallon

By Donna Miles
American Forces Press Service

WASHINGTON, March 11, 2008 – Defense Secretary Robert M. Gates today reluctantly accepted Navy Adm. William J. “Fox” Fallon’s letter of resignation as commander of U.S. Central Command and request for retirement. Fallon’s resignation will take effect March 31, Gates said in a Pentagon news conference.

His deputy, Army Lt. Gen. Martin Dempsey, will take over as acting CENTCOM commander until a permanent replacement is nominated and confirmed.

Gates told reporters Fallon advised him of his decision this morning, citing what the admiral called “the current embarrassing situation of public perception of differences between my views and administration policy and the distraction this causes from the mission.”

"Recent press reports suggesting a disconnect between my views and the president's policy objectives have become a distraction at a critical time and hamper efforts in the CENTCOM region,” Fallon said in a statement released by CENTCOM. “And although I don't believe there have ever been any differences about the objectives of our policy in the Central Command area of responsibility, the simple perception that there is makes it difficult for me to effectively serve America's interests there.”

Fallon said this disconnect led him to conclude “that it would be best to step aside and allow the secretary and our military leaders to move beyond this distraction ... and focus on the achievement of our strategic objectives in the region.”

Gates said Fallon reached this difficult decision entirely on his own and that he had approved it “with reluctance and regret.”

The secretary said he informed President Bush of Fallon’s decision and his plan to accept it earlier today. “The president has made clear all along that these matters are to be handled strictly within the Department of Defense,” he said.

“I believe it was the right thing to do, even though I do not believe there are, in fact, significant differences between his views and administration policy,” he said.

Some of the misperceptions involved perceived differences over U.S. policies regarding Iran. Gates said Fallon fully supported the administration’s policy of trying to deal with the Iranian challenge through diplomatic and economic pressures and sanctions.

“So I don't think that there really were differences at all,” Gates said. “But I think there is this misperception out there that there were.”

Months of trying to “put this misperception behind us,” it hasn’t succeeded, he said.

Gates said he agreed with Fallon’s assessment that whether true or not, he agrees that any misperceptions about the policy proved to be distractions from the mission. “That's why I believe he's made the right decision,” he said.

Navy Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, said he supports Gates’ decision to accept Fallon’s resignation and request for retirement. “I also respect the reasons for which Admiral Fallon submitted it and applaud his ability to recognize the responsibility before him,” the chairman said.

“By his leadership and through the example he continues to set with this decision today, he has demonstrated to future generations of soldiers, sailors, airmen, Marines and Coast Guardsmen the highest sense of personal honor and dignity,” Mullen continued.

Gates said Fallon will be difficult to replace. “He is enormously talented, very experienced, and he does have a strategic vision that is rare,” the secretary said. “So it does leave a hole.”

He expressed confidence, however, that a skilled and qualified replacement will be found among the many talented senior military officers.

The secretary praised Fallon’s distinguished 40-year military career that included leadership of U.S. Pacific Command and most recently, U.S. Central Command. “Fox Fallon has led our nation and hundreds of thousands of men and women in uniform with conviction, strategic vision, integrity and courage,” Gates said.

“As commander of CENTCOM, he has managed with skill and diplomacy the mounting challenges across the broader Middle East and has kept foremost in mind the need to protect our vital national security interests in the region,” the secretary said. “Fox Fallon has dedicated his life to the preservation of the freedoms we in this nation enjoy today, and all Americans should be deeply grateful for his dedication. On behalf of the Department of Defense and the nation, I thank him for his years of selfless service.”

Mullen and Bush shared Gates’ admiration of Fallon. “On behalf of the men and women of the armed forces, I extend to him and his family my heartfelt gratitude for the extraordinary service they have rendered this nation for more than four decades -- afloat and ashore, in peace and in war,” Mullen said.

“Bill Fallon is an extraordinary leader, a visionary and a good friend who answered our country's call time and time again in positions of ever greater responsibility,” he said. “He had an enormous impact, not only on the way we operate and fight in this new century, but also on the way in which we stay engaged globally.”

Bush noted in a statement released by the White House that Fallon made history as the first naval officer to command Central Command.

“From the Horn of Africa, to the streets of Baghdad, to the mountains of Afghanistan, the soldiers, sailors, airmen, Marines, and Coast Guardsmen of Central Command are vital to the global war on terror,” the president said. “During his tenure at CENTCOM, Admiral Fallon’s job has been to help ensure that America’s military forces are ready to meet the threats of an often-troubled region of the world, and he deserves considerable credit for progress that has been made there, especially in Iraq and Afghanistan.”

Bush expressed thanks to Fallon for serving the United States “with honor, determination and commitment,” and to the family that has supported his military service. “I wish them all the best as they begin the next chapter in their lives,” he said.
Commenting on his nearly-42-year career, Fallon said today he is “grateful for having had this opportunity to serve with the outstanding service personnel and civilians of Central Command.

“It has been my high honor to have served my nation and the Navy for four decades, and I thank all of you who continue to serve,” he said.

DoD: Defense Department Stands by Tanker Contract Decision

Defense Department Stands by Tanker Contract Decision

By Donna Miles
American Forces Press Service

WASHINGTON, March 11, 2008 – The selection of Northrop Grumman Corp. to build the next-generation air-refueling tanker aircraft followed a fair competition and was based on the merits of the proposals submitted, a senior Defense Department official told reporters today.
Bryan Whitman, deputy assistant secretary for public affairs, said the challenges like the one filed yesterday by the Boeing Company are built into the acquisition process to ensure it complies with federal regulations.

The Boeing Company filed a formal protest yesterday asking the Government Accountability Office to review the decision to contract with Northrop Grumman to build up to 179 KC-45A aircraft over the next decade. The Air Force announced the decision Feb. 29.

Northrop Grumman partnered with Airbus to compete against Boeing Corp. for the $35 billion contract.

If Boeing elects to challenge the process, the department “will take the necessary steps to ensure that is given the appropriate treatment,” Whitman said today.

GAO has 100 days to review the contract award and determine whether the Defense Department followed appropriate processes and procedures, he said.

“We believe that it was a very fair competition, transparent to the extent that any competition can be with the request for proposal process, and that the decision made by the department was based on merit,” Whitman said. “So we will see.”

During a Feb. 29 news conference announcing the contract decision, the Air Force acquisition chief said the Northrop Grumman proposal offered “the best value to the government” and earned top marks for mission capability, past performance and other factors.

Sue C. Payton, assistant secretary of the Air Force for acquisition, insisted that “no bias” was involved in the contract award.

Air Force Secretary Michael W. Wynne said the Air Force looks forward to the vastly superior air-fueling capabilities the next-generation tankers will offer over the current fleet of Eisenhower-era KC-135 Stratotanker aircraft they will replace.

“This is a platform we have been working on for some time, and clearly we want to move this program forward in an expeditious manner,” Whitman said today. “But challenges are part of the process and built into the system to ensure that the rigor and integrity of the federal acquisition regulation is followed. We are prepared to do that, and we will do that. “

Monday, March 10, 2008

UK MoD: 80,000 tonnes of steel ordered for new aircraft carriers

80,000 tonnes of steel ordered for new aircraft carriers
4 Mar 08
Contracts for the supply of 65 million pounds worth of steel, for the construction of the Royal Navy's two new aircraft carriers have been announced today, Tuesday 4 March 2008, by Minister for Defence Equipment and Support Baroness Taylor.

The supply of over 80,000 tonnes of steel from Corus for the manufacture of the two ships, with an estimated value of £65 million, is the same amount required for Heathrow Airport's Terminal 5 and three times that for Wembley Stadium.

Baroness Taylor also announced today another £8 million worth of contracts for other equipment to be used in the ships. These are:

The supply of Blown Fibre Optic Cable Plant (BFOCP) technology for the installation of optical cables for data transfer within the ships at a cost in excess of £3 million;
Reverse osmosis equipment which will produce over 500 tonnes of fresh water daily for up to 1,450 personnel onboard the ships, valued at over £1 million; and
Aviation fuel systems equipment to allow the fuelling and de-fuelling of embarked aircraft at a contract value of approximately £4 million.
Baroness Taylor, said:

"Today's announcement is a further signal of our commitment to the new aircraft carriers, which will be the nation's flagships. The construction of the carriers is good for British industry overall, bringing work not only to our principal shipyards but, as these contracts for over £70 million show, to other industries across the UK."

Project Team Leader, Rear Admiral Bob Love said:

"We are delighted with the reaction we have had from industry in terms of their keenness to support this significant project. These orders take us further along the path to commencing build work within the yards."

Contracts for supply of steel plates and bulb flats have been awarded to Corus (with UK sites in Scunthorpe, Teesside and Motherwell) and Dent Steel Services (Yorkshire) Ltd. The vast majority of steel tonnage (90% or more) will be produced in the UK with some smaller quantities being produced in Europe. Dent Steel Services will be providing warehousing, as well as shot-blasting and painting services.

A contract for the supply of Blown Fibre Optic Cable Plant (BFOCP) technology has been awarded to Brand-Rex Limited based at Glenrothes, Fife, Scotland. Brand-Rex has chosen to work with long standing partner, Alfred-McAlpine - IT Services, based in Glasgow, who will provide project management and installation services.

A contract for the supply of reverse osmosis equipment has been awarded to Salt Separation Services with the work being carried out in Rochdale, Lancashire.

A contract for the supply of Aviation Fuel Systems Equipment has been awarded to Fluid Transfer International with the work being carried out in Nailsworth, Gloucestershire.

The Future Carrier Project

The UK is procuring two new Aircraft Carriers for the Royal Navy - HMS Queen Elizabeth and HMS Prince Of Wales. The carriers will be the biggest and most powerful surface warships ever constructed for the Royal Navy and will deliver an increased strategic effect and influence around the world.

The ships will be delivered by the Aircraft Carrier Alliance (ACA) - an innovative alliance comprising industry participants and MOD - in which MOD acts as both client and participant. For the manufacture phase the industrial participants will be: the BAES/VT planned Joint Venture, Thales, Babcock and BAES (Surface Ships & Insyte).

Facts and Figures:

The carrier will be similar size and weight as the ocean liner the QE2
The CVF weighs more than 32,500 average family cars.
Diesel generators that provide electricity and propulsion to CVF weigh up to 220 tonnes apiece, producing a total power output of 108MW - the equivalent of the power needed to run a town the size of Swindon.
CVF will carry over 8,600 tonnes of fuel to support the Ship and her aircraft - enough for the average family car to travel to the moon and back twelve times.
The ships can carry more than 1,000 tonnes of food - enough to feed the crew for six weeks.
The flight deck area is nearly 13,000m2 - the equivalent of 49 tennis courts or three football pitches.
The hangar is 29,000m3 - equivalent to 12 Olympic swimming pools.
The crew will have a range of recreational activities, when not on duty, such as film shows, fitness training, weight training and gym work, available 24-hours-a-day. As is currently the case in the fleet, all personnel have access to e-mail and the Internet, subject to satellite communications equipment not being used for operational purposes.
CVF will produce over 500 tonnes of fresh water daily.
Designing and building the ships is expected to sustain and create some 10,000 jobs across the UK throughout its design and manufacture. At the peak of assembly, over a thousand personnel are expected to be engaged on CVF at each of the yards at Govan, Barrow, Rosyth and Portsmouth.
The CVF dimensions are:

65,000 tonnes at full displacement
284m (931ft) length x 73m (239ft) width at flightdeck level.
56m from keel to masthead - 6m taller than Nelson's Column.
11m max draft (keel to waterline)
Nine decks deep + Flight Deck
40 aircraft

Raytheon Integrated Defense Systems Names Kapoor and O'Brien Vice Presidents

Raytheon Integrated Defense Systems Names Kapoor and O'Brien Vice Presidents

TEWKSBURY, Mass., Feb. 26, 2008 /PRNewswire/ -- Raytheon Company's
(NYSE: RTN) Integrated Defense Systems (IDS) has named Sanjay Kapoor vice
president, Patriot Programs and Anthony F. "Toby" O'Brien vice president,
Finance IDS and chief financial officer.

Kapoor will report to IDS President Dan Smith; O'Brien will report to
both Smith and Raytheon Company's Senior Vice President and Chief Financial
Officer David Wajsgras.

Kapoor had been vice president, Finance IDS and chief financial officer
since 2004. Prior to joining Raytheon, he had been with United Technologies
Corporation since 1990, serving in roles of increasing responsibility.
Kapoor has a bachelor's degree in technology from the Indian Institute of
Technology and an MBA from Wharton School at the University of

Replacing Kapoor, O'Brien most recently served as the Raytheon Company
vice president, finance. He joined the corporate finance team in 2006 after
serving five years as chief financial officer at the former Raytheon
Aircraft Company. Prior to RAC, he was chief financial officer for the
former Raytheon Aircraft Integration Systems from 2000 to 2002. He joined
Raytheon in 1986 as part of the Finance Leadership Development Program
after receiving his bachelor's degree from Boston College.



MOORESTOWN, NJ, March 5th, 2008 -- Last Friday, Lockheed Martin [NYSE: LMT] delivered the first missionized HC-130J long-range surveillance maritime patrol aircraft to the U.S. Coast Guard. The aircraft’s new mission equipment and sensor packages are designed to deliver enhanced search, detection and tracking capabilities to perform maritime search and rescue, maritime law enforcement and homeland security missions.

“With the stroke of a pen, the most capable aircraft in the Coast Guard’s history is now in our inventory,” said Coast Guard Capt. Matthew Sisson, Deepwater aviation program manager, as he signed the acceptance papers on February 29.

Lockheed Martin is working under a fixed-price contract to deliver three missionized HC-130Js and is on schedule to complete the aircraft this month. A contract modification is expected in the coming weeks to begin work on the fourth aircraft. The contract modification will also include options for missionizing the remaining two aircraft to round out the Coast Guard inventory of six HC-130Js.

“Expectations run high as the fleet prepares to exploit the capabilities of the fully-missionized HC-130J,” said Cmdr. Tim Schang, HC-130J platform manager with the Coast Guard’s Office of Aviation Forces.

The aircraft modifications include installation of a belly-mounted surface search radar, a nose-mounted electro-optical infrared sensor, a flight deck mission operator station and a mission integrated communication system. The mission system installed on the HC-130J is derived from the same software series developed for the mission system pallet onboard the HC-144A maritime patrol aircraft concurrently in testing.

“The missionized HC-130J is ideal for multi-tasked operations,” said Rich Lockwood, vice president of Lockheed Martin’s Coast Guard Systems business. “In addition to its new command and control and surveillance capability, the aircraft retains the full cargo carrying capability that has made the Hercules the most versatile airlift platform worldwide for more than 50 years.”

Lockheed Martin leveraged the breadth of the corporation by bringing together its Maritime Systems & Sensors and Aeronautics companies to perform the work for this important component of the Coast Guard’s Deepwater program.

Integrated Coast Guard Systems, a joint venture of Lockheed Martin and Northrop Grumman, was awarded the Deepwater contract in June 2002 and has been renewed through January 2011.



PALO ALTO, Calif, March 5th, 2008 -- A team headed by Lockheed Martin [NYSE: LMT] Space Systems Company (LMSSC) has received a $5.7 million contract from DARPA to compete in Phase 1 development of their System F6 space technology and demonstration program. F6 is shorthand for “Future, Fast, Flexible, Fractionated, Free-Flying Spacecraft United by Information Exchange.”

The DARPA System F6 program intends to demonstrate that a traditional, large, monolithic satellite can be replaced by a group of smaller, individually launched, wirelessly networked and cluster-flown spacecraft modules. Each “fractionated” module can contribute a unique capability to the rest of the network, such as computing, ground communications, or payload functionality. The ultimate goal of the program is to launch a fractionated spacecraft system and demonstrate it in orbit in approximately four years.

“Our team brings together the perfect combination of innovation, expertise, experience and past performance to successfully demonstrate the value and flexibility of a fractionated approach to satellite systems,” said Dr. Jim Ryder, vice president of the Lockheed Martin Space Systems Advanced Technology Center (ATC) in Palo Alto. “For our 12 Month Phase 1 preliminary design effort, we will evaluate fractionation technologies and system econometrics, simulate the fractionated space network mission with our extensive space-qualified hardware-in-the-loop (HIL) and Controls & Automation Laboratory testbeds and work closely with our DARPA partner to conduct a thorough stakeholder analysis to identify potential mission partners.”

The Lockheed Martin effort comprises a multi-disciplinary team of leaders for all System F6 technology pillars. The ATC delivers advanced research in space system network architectures and control for fractionation. The LMSSC Surveillance & Navigation Systems (SNS) line of business delivers experience in mission partner concepts and fielding SmallSats for proximity operations. Lockheed Martin Information Systems & Global Services (IS&GS) delivers ground systems. Other teammates include Colbaugh & Heinsheimer (supported by several Stanford University professors), Aurora Flight Sciences (supported by several MIT professors), and Vanderbilt University.

The ATC is the research and development organization of Lockheed Martin Space Systems Company (LMSSC). LMSSC, a major operating unit of Lockheed Martin Corporation, designs, develops, tests, manufactures and operates a full spectrum of advanced-technology systems for national security, civil and commercial customers. Chief products include human space flight systems; a full range of remote sensing, navigation, meteorological and communications satellites and instruments; space observatories and interplanetary spacecraft; laser radar; fleet ballistic missiles; and missile defense systems.

U.S. Air Force Selects Northrop Grumman To Provide The New KC-45A Aerial Refueling Tanker

U.S. Air Force Selects Northrop Grumman To Provide The New KC-45A Aerial Refueling Tanker

LOS ANGELES, Feb. 29, 2008 -- Northrop Grumman Corporation (NYSE:NOC) announced today that it has been selected by the U.S. Air Force to provide the KC-45A aerial refueling tanker for the KC-135 tanker replacement program. The Air Force's KC-45A is based on the highly-successful A330 commercial airframe, produced by EADS.

"We are excited to partner with the Air Force for their number one acquisition priority, the KC-45A Tanker," said Ronald D. Sugar, Northrop Grumman chairman and chief executive officer. "Northrop Grumman's vast expertise in aerospace design, development and systems integration will ensure our nation's warfighters receive the most capable and versatile tanker ever built. The Northrop Grumman KC-45A tanker will be a game changer."

The initial KC-45A contract provides four System Design and Development aircraft and is valued at $1.5 billion. The first KC-45A airframe completed its first flight on Sept. 25, 2007 and will now begin military conversion to the tanker configuration. The KC-45A's Aerial Refueling Boom System is currently in flight test and has successfully performed numerous in-flight contacts with receiver aircraft.

"Clearly the U.S. Air Force conducted a thorough and transparent competition in choosing their new tanker, which resulted in selection of the aircraft that best meets their current and future requirements," said Gary Ervin, corporate vice president and president of Northrop Grumman's Integrated Systems sector. "By selecting the most capable and modern aircraft, the Air Force has embraced a system that provides a best-value solution to our armed forces and our nation."

The KC-45A Tanker aircraft will be assembled at new, state-of-the-art manufacturing facilities in Mobile, Ala., and will employ 25,000 workers at 230 U.S. companies. The KC-45A's refueling systems will be built at new facilities in Bridgeport, W.Va., and delivered to the KC-45A Production Center for aircraft integration.

The KC-45A will be built by a world-class industrial team led by Northrop Grumman, and includes primary subcontractor EADS North America and General Electric Aviation, Sargent Fletcher, Honeywell, Parker, AAR Cargo Systems, Telephonics and Knight Aerospace.

Northrop Grumman Announces Leadership Appointments To Support Integration Of Shipbuilding Sector

Northrop Grumman Announces Leadership Appointments To Support Integration Of Shipbuilding Sector

NEWPORT NEWS, Va., March 3, 2008 (PRIME NEWSWIRE) -- Northrop Grumman Corporation (NYSE:NOC) announced today two newly created and key positions at its Shipbuilding sector. Matthew J. Mulherin has been appointed sector vice president and general manager of Newport News, and Irwin F. Edenzon has been appointed sector vice president and general manager for the Gulf Coast. They will report to Mike Petters, corporate vice president and president of Northrop Grumman Shipbuilding, and will have responsibility for operations, program execution and site management with major focus on the successful integration of the Shipbuilding sector.

Northrop Grumman Shipbuilding, a newly-formed sector of Northrop Grumman Corporation, is made up of the former Northrop Grumman Ship Systems and Newport News shipbuilding entities.

Mulherin will be based in Newport News, Va., and will have leadership responsibility for all Newport News programs and operations, including U.S. Navy nuclear-powered submarine and aircraft carrier programs and fleet support. Edenzon will be based in Pascagoula, Miss., and will lead all Gulf Coast programs and operations, including U.S. Navy destroyer, amphibious assault and surface combatant programs, and the U.S. Coast Guard cutter program. Edenzon also retains responsibility for Continental Maritime, a San Diego shipyard that services and supports U.S. Navy ships stationed on the West Coast, and AMSEC, a full-service provider of engineering, logistics and technical support services.

"The successful integration of Northrop Grumman Shipbuilding will be the major focus for Irwin and Matt in their new positions. Each has extensive knowledge and expertise in every dimension of shipbuilding, from development and design to construction and maintenance to program management," said Petters. "They have demonstrated excellence in leading large and complex organizations, and their knowledge and expertise will be critical to integrating and aligning our people, capital, and technology to improve efficiencies and provide the full range of capabilities to our customers."

Edenzon most recently served as vice president for Newport News' technology development and fleet support division. He joined Newport News in 1997 as director of international programs, was director for future carrier programs, and served as vice president for business and technology development among other positions. He previously served in leadership positions with Textron Marine, Sperry Marine and Perry Offshore. He earned a bachelor's degree in criminal justice from Rutgers University and a master's in business administration from Florida Atlantic University.

Mulherin, who joined Newport News in 1981, most recently served as vice president of programs for Newport News, where he successfully led the CVN 21 and CVN 77 aircraft carrier programs, carrier refueling and overhaul programs and the Virginia-class submarine program. Mulherin earned a bachelor's degree in civil engineering from Virginia Tech. He also served as vice president for the CVN 21 program, was the nuclear project manager for Los Angeles-class submarines, and was responsible for Newport News facilities.

Northrop Grumman Appoints Joseph K. Dodd To Vice President, Business Development And Marketing, Intelligence Group

Northrop Grumman Appoints Joseph K. Dodd To Vice President, Business Development And Marketing, Intelligence Group

MCLEAN, Va., March 4, 2008 (PRIME NEWSWIRE) -- Northrop Grumman Corporation (NYSE:NOC) announced today the appointment of Joseph K. Dodd to vice president of business development and marketing for the Information Technology (IT) sector's Intelligence group (TASC).

Joseph K. Dodd, vice president of business development and marketing for Northrop Grumman Information Technology sector's Intelligence group (TASC).

In this role, Dodd will oversee business development, capture, proposal, strategy, and marketing efforts for Northrop Grumman IT's Intelligence group (TASC). In addition to his responsibilities to grow the business, he will focus on engaging and growing new company partnerships.

"Joe's hard work has led numerous growth initiatives," said Wood Parker, president of Northrop Grumman IT's Intelligence group (TASC). "He will use his significant leadership experience to help extend our success with existing customers in the defense and intelligence communities and help shape future new program opportunities."

Dodd has more than 25 years of experience in defense, intelligence, aerospace and international markets. Most recently, he was director of business development and marketing for the IT sector's Intelligence group. Prior to joining Northrop Grumman, Dodd served as vice president of Federal Alliances for Space Imaging LLC and senior vice president for worldwide sales for Orbital Imaging Corporation, where he was the principal interface with many defense and intelligence agencies.

He earned a bachelor's degree in meteorology from the University of California, Los Angeles, and a master's degree in satellite remote sensing from Pennsylvania State University.

Northrop Grumman Responds To Inaccurate Comments Concerning The U.S. Air Force KC-45A Award Decision

Northrop Grumman Responds To Inaccurate Comments Concerning The U.S. Air Force KC-45A Award Decision

LOS ANGELES - March 5, 2008 - When the process to replace America's aging fleet of KC-135 aerial refueling tankers began in 2005, the U.S. Air Force made clear that it wanted a full and fair competition. Northrop Grumman Corporation (NYSE:NOC) entered the competition with the understanding that if its proposal provided the best value to the warfighter and the American taxpayer, it could win the contract.

Since the Air Force's decision to award Northrop Grumman the KC-45A contract was announced, numerous erroneous comments have been repeated in the media and in Congress. In response, the company wants to make the following points clear:

Industrial Base
* The Northrop Grumman KC-45A tanker program will create a new
aerospace manufacturing corridor in the southeastern United States.
* The KC-45A program helps return competitiveness to the U.S.
aerospace industry.

* The Northrop Grumman KC-45A tanker program does not transfer any
jobs from the United States to France or any other foreign country.
* The KC-45A tanker will support more than 25,000 jobs in the United
* The KC-45A U.S. supplier base will include 230 companies in 49
* Assembly and militarization of the KC-45A tanker will take place in
Mobile, Ala., resulting in the creation of approximately 2,000 direct
jobs in the United States.

Acquisition Process
* The KC-45A competition underwent the most rigorous, transparent
acquisition process in U.S. Department of Defense history.
* Throughout the process, both competitors in the KC-45A acquisition
hailed the Air Force for conducting a fair and open competition.

Foreign Content
* All modern jetliners are built from a global supplier base and the
two entrants in the KC-45A competition are no exception. The Boeing
tanker includes parts manufactured in Japan, United Kingdom, Canada
and Italy. The Northrop Grumman tanker includes parts built in the
United Kingdom, Germany, Spain and France.
* The Northrop Grumman KC-45A will include approximately 60 percent
U.S. content. It is America's tanker.

Foreign Suppliers to U.S. Military Programs
* There are numerous examples of transatlantic cooperation on vital
U.S. military programs. Foreign suppliers currently play essential
roles in the F-35 Joint Strike Fighter and the VH-71 Presidential
Helicopter. In fact, on the C-27J Joint Cargo Aircraft program,
Boeing is responsible for producing the Alenia Aeronautica (Italy)
aircraft in Jacksonville, Fla.
* No sensitive military technology will be exported to Europe. For
the KC-45A program, a commercial A330 jetliner will be assembled by
American workers in EADS's facility in Mobile. The aircraft will
then undergo military conversion in an adjacent Northrop Grumman
facility. All of the KC-45A's critical military technology will be
added by an American company, Northrop Grumman, in America, in
Mobile Ala.

Boeing Names New Vice President of International Strategy

Boeing Names New Vice President of International Strategy

ST LOUIS, Feb. 11, 2008 -- The Boeing Company [NYSE: BA] has named retired U.S. Air Force Lt. Gen. Jeffrey B. Kohler vice president of International Strategy for Integrated Defense Systems Business Development.

In this role, Kohler will develop strategies to grow the company's international business while improving IDS products and services through strengthened partnerships around the world.
"Jeff's extensive international experience and leadership qualities are tremendous assets as we continue to broaden Boeing's global reach," said Chris Raymond, vice president, IDS Business Development. "This position underscores the impact international business opportunities have on our long-term growth and productivity and will complement our current focus."

Prior to retiring from the Air Force in September 2007, Kohler was director of the Defense Security Cooperation Agency, where he led U.S. foreign military sales and financing programs, international military education and training, and humanitarian assistance and mine action programs for the U.S. Department of Defense. Under his leadership, the agency managed more than 12,000 security assistance cases from 189 countries and organizations.

During his 34-year Air Force career, Kohler also served as director of Plans and Policy at U.S. European Command Headquarters in Germany and director of Operational Plans at U.S. Air Force Headquarters in Washington, D.C. He also has commanded the 34th Fighter Squadron at Hill Air Force Base (AFB), Utah; the 12th Operations Group at Randolph AFB, Texas; the 100th Air Refueling Wing, Royal Air Force Mildenhall, England; and was the vice commander of 7th Air Force, Osan Air Base, South Korea.

An accomplished command pilot-rated aviator, Kohler has logged more than 3,500 flying hours in numerous fighter and trainer aircraft, including the KC-135R, F-4 and F-16.
He holds a Bachelor of Science degree from the U.S. Air Force Academy and a master's degree in history from the University of Indiana.

Thales and Boeing Sign FRES Contract with UK Ministry of Defence

Thales and Boeing Sign FRES Contract with UK Ministry of Defence

ST. LOUIS, Feb. 06, 2008 -- The UK Ministry of Defence (MoD) today announced the award of a contract to Thales UK in partnership with The Boeing Company [NYSE: BA] for the System-of-Systems Integrator (SOSI) role on the Future Rapid Effect System (FRES) program.
The initial six-month contract, valued at £4 million (US$8 million), defines the framework for the SOSI's ongoing role in the subsequent phases of this key program, which will provide the British Army with a new family of medium-weight, network-enabled armored vehicles. The role of the SOSI is to drive the successful delivery of a coherent FRES capability.
The Thales UK-Boeing SOSI team will be integrated into the MoD's FRES project team to form an Integrated Customer Team that will manage the delivery of FRES. The SOSI will provide expertise in the following areas:

  • Program management
  • System-of-systems engineering and integration
  • Through-life capability and technology management
  • Alliance development and supply chain management
  • Development of MoD's SOSI competence

"The rapid downselect and now contract award for the FRES SOSI reflects not only MoD's desire to inject pace into the program, but also our ability to work together effectively," said Alex Dorrian, CEO of Thales UK. "The SOSI role highlights Thales UK's position at the heart of UK land systems integration, alongside FIST and WATCHKEEPER."
Rick Baily, vice president and general manager, Boeing Combat Systems, added, "We look forward to working with the MoD and the entire FRES industry team to deliver the optimal capability for this important program for the British Army."

Boeing Reports Record Revenues, Earnings, Cash Flow & Backlog for 2007

Boeing Reports Record Revenues, Earnings, Cash Flow & Backlog for 2007

  • 2007 revenues rose 8 percent to $66.4 billion
  • Full-year net income increased 84 percent to $4.1 billion while EPS grew to $5.28 per share, driving cash flow to $9.6 billion
  • Fourth-quarter EPS grew to $1.36 per share on revenue of $17.5 billion
  • Backlog reached a record $327 billion
  • 2008 EPS guidance raised to between $5.70 and $5.85 per share

Boeing Awarded U.S. Army Contract for 11 New CH-47F Chinook Helicopters

Boeing Awarded U.S. Army Contract for 11 New CH-47F Chinook Helicopters

ST. LOUIS, Feb. 27, 2008 -- The Boeing Company [NYSE: BA] has been awarded a $280.5 million U.S. Army contract for 11 new CH-47F Chinook helicopters, increasing the number of new Chinooks on contract to 59. Aircraft deliveries under this award will begin in 2011.
"This new contract award represents a long-term commitment to supporting our warfighters," said Ken Eland, Boeing CH-47F program director. "Our commitment is to continue the high level of quality and performance we established in 2007."
Since Boeing unveiled the aircraft at its Ridley Township, Pa., production facility in June 2006, the new Chinook has successfully completed all evaluations, including airworthiness, functional and operational testing at Fort Campbell, Ky. Units also have completed more than 1,000 flight hours, including Joint Readiness Training Center training and a wide range of night-vision-goggle training exercises that simulated air assault, combat resupply and transport operations.
The CH-47F helicopter features a newly designed, modernized airframe, a Rockwell Collins Common Avionics Architecture System (CAAS) cockpit and a BAE Digital Advanced Flight Control System (DAFCS).
The CAAS cockpit greatly improves aircrew situational awareness, while DAFCS provides dramatically improved flight control capabilities through features such as "hover hold," "altitude hold" and "beep down" that improve performance and safety in brownout situations as well as the entire flight envelope.
Advanced avionics also incorporate improved situational awareness for flight crews with an advanced digital map display and a data transfer system that allows storing of preflight and mission data. Improved survivability features include Common Missile Warning and Improved Countermeasure Dispenser Systems. The entire suite of improved cockpit capabilities will apply to other H-47 models.
Powered by two 4,868-horsepower Honeywell engines, the new CH-47F can reach speeds greater than 175 mph and transport more than 21,000 pounds. The CH-47F, with the Robertson Aviation Extended Range Fuel System, has a mission radius of more than 400 nautical miles.

Boeing: Uncertainty About Process Remains After Air Force Tanker Debrief

Boeing: Uncertainty About Process Remains After Air Force Tanker Debrief 

ST. LOUIS, March 07, 2008 -- The U.S. Air Force has completed a debriefing for The Boeing Company [NYSE: BA] during which acquisition officials sought to explain why they selected a team of Northrop Grumman and the European Aeronautic Defence and Space Company (EADS) for a contract to replace aerial refueling tankers.
The debriefing on Friday came one week after the Air Force's surprising announcement that it had chosen the Northrop-EADS team over the Boeing KC-767 tanker offering.
"We spent several hours with Air Force leaders, listening and probing, all in an effort to better understand the reasoning behind their decisions," said Mark McGraw, Boeing vice president and program manager of the KC-767 tanker. "While we are grateful for the timely debriefing, we left the room with significant concerns about the process in several areas, including program requirements related to capabilities, cost and risk; evaluation of the bids and the ultimate decision.
"What is clear now is that reports claiming that the Airbus offering won by a wide margin could not be more inaccurate," said McGraw.
Boeing officials said that they will take the next few days to evaluate the data presented and will give serious consideration to filing a protest.
"Our plan now is to work through the weekend to come to a decision on our course of action early next week," said McGraw. "It will be a very rigorous and deliberative process to ensure we're balancing the needs of the warfighter with our desire to be treated fairly. For decades Boeing has been recognized as a defense company that never takes lightly protests of our customers' decisions."

Boeing to File Protest of U.S. Air Force Tanker Contract Award

Boeing to File Protest of U.S. Air Force Tanker Contract Award

CHICAGO, March 10, 2008 -- The Boeing Company [NYSE: BA] will file a formal protest on Tuesday asking the Government Accountability Office (GAO) to review the decision by the U.S. Air Force to award a contract to a team of Northrop Grumman and European Aeronautic Defence and Space Company (EADS) to replace aerial refueling tankers.
"Our team has taken a very close look at the tanker decision and found serious flaws in the process that we believe warrant appeal," said Jim McNerney, Boeing chairman, president and chief executive officer. "This is an extraordinary step rarely taken by our company, and one we take very seriously."
Following a debriefing on the decision by the Air Force on March 7, Boeing officials spent three days reviewing the Air Force case for its tanker award. A rigorous analysis of the Air Force evaluation that resulted in the Northrop/EADS contract led Boeing to the conclusion that a protest was necessary.
"Based upon what we have seen, we continue to believe we submitted the most capable, lowest risk, lowest Most Probable Life Cycle Cost airplane as measured against the Air Force's Request for Proposal," McNerney said. "We look forward to the GAO's review of the decision."
Boeing said it would provide additional details of its case in conjunction with the protest filing on Tuesday.


15 Feb 2008 | Ref. 052/2008

London, United Kingdom - A consortium led by BAE Systems has today submitted its response to the Ministry of Defence’s Pre-Qualifying Questionnaire (PQQ) to design and build up to six fleet tankers for the UK Royal Fleet Auxiliary. The company will partner with BMT Defence Services Ltd and Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) to bid for the contract for the ships, the first part of the Military Afloat Reach and Sustainability (MARS) programme.
BAE Systems through its Surface Fleet Solutions business will act as lead contractor and programme manager, BMT will be the design partner and the ships are planned to be built by DSME in Korea. This approach combines the best global experience in both commercial and military shipbuilding.

Vic Emery, managing director of BAE Systems Surface Fleet Solutions, said “By bringing together this unique mix of UK and Korean commercial and naval design, ship-build and project management capability, the consortium will offer the Ministry of Defence an unparalleled degree of flexibility and experience in delivering the MARS fleet tankers.

“While it is intended that all vessels will be constructed in Korea, a unique feature the consortium offers, in terms of flexibility, is the ability to provide UK build options, should such an approach become necessary”.

David Rainford, commercial director of BMT Defence Services, said “As a relatively small, innovative organisation, we are pleased with the smooth and positive fashion in which BAE Systems has welcomed us as their design partner. Through a commercial approach we will be able to provide a simple yet effective MARS fleet tanker”.

K W Cheong, director of DSME Special Ship Management said "This is an excellent opportunity for co-operation between our two countries; the UK being the home of naval shipbuilding and Korea as the hub of commercial shipbuilding. I think the combination of BAE Systems’ extensive naval domain knowledge with our own skills and resources will produce excellent results."

The MARS programme will become part of the workload of the proposed maritime joint venture between BAE Systems and VT Group, to be called BVT Surface Fleet, upon its completion.


20 Feb 2008 | Ref. 071/2008

London, United Kingdom – The Board of BAE Systems plc has appointed Ravi Uppal as a non-executive Director of the Company, with effect from 2 April 2008.
Ravi Uppal is President, Global Markets, for the power and automation technology group ABB Limited, where he is also a member of the Group Executive Committee. Based in Zurich, he is responsible for ABB’s marketing and business development worldwide.

Welcoming the new non-executive Director’s appointment, Dick Olver, Chairman of BAE Systems said: “Ravi has first hand experience of managing engineering and technology businesses in Europe, the Middle East and Southeast Asia. As we look to expand our global footprint, his appointment will further broaden the experience and knowledge within the Board.”

During his career with ABB, Ravi Uppal has worked in India, Sweden, Germany and the Middle East. In 1990’s he was Managing Director of Volvo India – establishing that company’s business there.

Peter Weinberg, having completed a three-year term of appointment as a non-executive Director of BAE Systems, will retire from the Board at the Company’s Annual General Meeting to be held on 7 May 2008.

“Peter leaves us to dedicate more time to his business interests as a partner in the rapidly growing financial services firm, Perella Weinberg partners,” states Dick Olver. “His international business experience and knowledge has been of great value to the Board and we wish him every success for the future.”

From 2 April 2008 the BAE Systems Board of Directors will be as follows:

Non Executive Directors
Dick Olver, chairman
Philip Carroll Jr.
Michael Hartnall
Sir Peter Mason
Sir Nigel Rudd
Roberto Quarta
Ravi Uppal
Peter Weinberg
Andy Inglis

Executive Directors
Mike Turner CBE, Chief Executive
George Rose, Group Finance Director
Ian King, Chief Operating Officer, UK & Rest of World
Walt Havenstein, Chief Operating Officer and President & CEO, BAE Systems Inc



29 Feb 2008 | Ref. 079/2008

First steel cut for Sixth Type 45 Destroyer, Duncan
Glasgow, United Kingdom – BAE Systems today welcomed The Rt. Hon. Baroness Taylor to Glasgow as she cut the first piece of steel for the sixth Type 45 Destroyer, HMS Duncan, during her first visit to the Govan and Scotstoun yards since taking up the post of Minister for Defence Equipment and Support.

During her visit, the Baroness toured both BAE Systems’ facilities and met a number of apprentices and graduates who are currently training to become the warship builders of the future. The Minister also went aboard the first Type 45 Destroyer, HMS Daring, which is due to be handed over to the Royal Navy later this year following further extensive sea trials.

Speaking after The Rt. Hon. Baroness Taylor’s visit, managing director of BAE Systems Surface Fleet Solutions, Vic Emery OBE said; “This is a very proud day for the workforce on the Clyde, who throughout the build and integration process of the Type 45 programme have proven themselves to be the most highly skilled in the industry.

“It is important that the Minister has the opportunity to see for herself the exceptional quality and design we produce here on the Clyde and the capability that these ships will bring to the Royal Navy once the fleet starts to enter service in 2009.

“I am delighted that the Baroness has taken this opportunity to have a personal involvement with the Type 45 Destroyer programme and I look forward to working very closely with her on this and other projects in the future.”

Scott Ballingall, second year apprentice from Erskine who met the Baroness during her visit said; “I am really pleased that Baroness Taylor took the time to visit the yards today. Cutting steel on any ship is a really big event on the Clyde, so I’m very proud to have been part of the ceremony today.”

The Type 45 Anti-Air Warfare Destroyers are the most advanced ships of their type in the world to date and will provide the backbone of the Royal Navy’s air defences for much of the first half of the 21st century. Three of the fleet of six ships have already been launched, the most recent of which, HMS Diamond, was watched by thousands of members of the public as she entered the Clyde for the first time from the berth in Govan in November 2007. The first of class, HMS Daring, is set to perform her second set of sea trials in April this year following a hugely successful first trial in the summer of 2007.

BAE Systems Appoints Storme Street as Director of Government Relations

BAE Systems Appoints Storme Street as Director of Government Relations

04 Mar 2008 | Ref. 082/2008

WASHINGTON – BAE Systems, Inc. has appointed Storme Street as Director of Government Relations. Storme will coordinate with BAE Systems’ operating groups and senior leadership to develop a corporate-level public policy strategy, and will serve as one of the company’s chief advocates on corporate issues, including tax, acquisition and defense trade policy.

Storme will be based at the company’s office in Rosslyn, Virginia.

“Storme’s understanding of both the business world and the policy arena support BAE Systems’ strategic goals and needs, and her experience with issues such as tax, trade, federal procurement, technology and innovation will provide new added depth to our team as we continue to grow,” said Bob Fitch, BAE Systems senior vice president of government relations.

Immediately prior to joining BAE Systems, Storme worked as an independent consultant, representing clients in the technology and defense industries on issues of public policy and government relations strategy. Previously, she spent five and a half years at the Electronic Industries Alliance (EIA), a high-tech trade association. In her role as the Vice President of Government Relations, Storme was the head of policy development and the chief advocate for the association’s 900+ global corporate members. Storme joined to EIA after serving as a Congressional fellow on Capitol Hill.

Before entering the government relations and policy arenas, Storme spent a number of years in financial and technology journalism, serving in various reporting and editing capacities at wire service BridgeNews, financial analysis website, the Financial Times Group in London, and U.K. business publisher Baskerville Communications.

Storme holds a Bachelor of Journalism from the University of Missouri and is an MBA candidate at George Mason University in Virginia.