Thursday, June 19, 2008

Boeing Statement on Tanker Protest Ruling

Boeing Statement on Tanker Protest Ruling
ST. LOUIS, June 18, 2008 -- Boeing [NYSE: BA] was informed today that the Government Accountability Office (GAO) found in Boeing's favor on a number of issues related to its protest of the U.S. Air Force's award of a $35 billion contract to supply the service with its next-generation aerial refueling aircraft -- or KC-X tankers -- to begin replacing the current fleet of KC-135 tankers.
In response to the ruling, Boeing released the following statement from Mark McGraw, vice president, Tanker Programs:
"We welcome and support today's ruling by the GAO fully sustaining the grounds of our protest.
"We appreciate the professionalism and diligence the GAO showed in its review of the KC-X acquisition process. We look forward to working with the Air Force on next steps in this critical procurement for our warfighters."

Monday, June 16, 2008

Gates: Nuclear mission shortcomings caused dismissals

6/10/2008 - LANGLEY AIR FORCE BASE, Va. (AFPN) -- If it were not for the serious decline in the Air Force's nuclear mission focus and performance, Defense Secretary Robert M. Gates said here June 9, he would not have felt the need to replace the Air Force leadership.

Secretary Gates asked for and received the resignations of Air Force Secretary Michael W. Wynne and Air Force Chief of Staff Gen. T. Michael Moseley June 6 in the wake of an investigation that found problems with the focus, performance and effective leadership of the service's nuclear weapons program.

Speaking to Airmen and Air Force civilians of Air Combat Command, the secretary called the nuclear mission the Air Force's most sensitive one.

"The mere existence of weapons with such destructive power alters the international landscape, and rightfully brings much scrutiny to bear on how they are handled," he said.

Two instances highlighted the nuclear failures. In one, a B-52 Stratofortress crew unknowingly carried six nuclear weapons from Minot Air Force Base, N.D., to Barksdale AFB, La. In another incident, nose cones for Minuteman missiles mistakenly were delivered to Taiwan in place of helicopter batteries. More than a year elapsed before the error became known.

In light of these failures, Secretary Gates asked Navy Adm. Kirkland Donald to evaluate the system. He found three systemic problems.

"The Air Force does not have a clear, dedicated authority responsible for the nuclear enterprise who sets and maintains rigorous standards of operations," the secretary said.

Second, he said, the failures that led to the nose-cone misshipment could have been prevented had existing controls been followed.

Finally, "the investigation confirmed a decline in Air Force nuclear expertise similar to findings in other, earlier reports," Secretary Gates said. In addition, the nuclear mission has not received adequate funding for years.

Secretary Gates said the decisive action was needed because Air Force leadership allowed the service's focus to drift away from the nuclear mission. They also allowed performance standards to decline, and they did not identify these problems for correction.

"The Air Force's investigation into what went wrong did not get to the root causes, requiring my personal intervention," he said.

The secretary has stressed accountability with all services. He encouraged all servicemembers to assess their jobs, take accountability for what they can and ensure that changes outside their purview receive the appropriate attention.

"The important thing is to have an open and respectful airing of views in good faith," Secretary Gates said. "When decisions are made, everyone -- both civilian and military -- must do his or her part to see them through to success."

Resignation statement from the Air Force chief of staff

6/6/2008 - WASHINGTON (AFPN) -- Air Force Chief of Staff Gen. T. Michael Moseley issued the following statement today:

Recent events have highlighted a loss of focus on certain critical matters within the Air Force. As the Air Force's senior uniformed leader, I take full responsibility for events which have hurt the Air Force's reputation or raised a question of every Airman's commitment to our core values.

For the past 36 years I have been privileged to serve my country as an Airman in the United States Air Force in peacetime and combat. I was honored and humbled to be appointed the Air Force's 18th chief of staff and have been proud to serve our Airmen and their families. Upon taking office, I worked hard with Secretary Wynne to ensure the Air Force provided the right forces at the right time to help our nation and allies win the global war on terror.

I think the honorable thing to do is to step aside. After consulting with my family, I have submitted my request to resign to Secretary Gates. The Air Force is bigger than one Airman, and I have full confidence that the Air Force will continue working with the joint team to win today's fight, take care of its Airmen, and meet tomorrow's challenges. I love the Air Force and remain proud of America's Airmen.

Resignation statement from the secretary of the Air Force

6/6/2008 - WASHINGTON (AFPN) -- Secretary of the Air Force Michael W. Wynne issued the following statement today:

Since November 3, 2005, it has been my privilege to serve this country as the 21st secretary of the Air Force. I have relished the opportunity President Bush gave me to lead the strongest Air Force in the world during a time of war, and I have marveled at the tremendous accomplishments of our Airmen and civilians in their valiant defense of this country and its interests.

It has been an honor and pleasure to serve as their secretary while working side-by-side with General Moseley and the magnificent patriots serving in the Department of Defense and the United States government to win today's fight, take care of our people and prepare for tomorrow's challenges.

Recent events convince me that it is now time for a new leader to take the stick and for me to move on. Therefore I have given my request to resign to Secretary Gates. Even as I do, my heart, my thoughts and prayers remain with America's Airmen who will continue to do magnificent things for this great country.

Two Top Air Force Leaders Resign

6/9/2008 - WASHINGTON (AFPN) -- The Air Force's top civilian and uniformed leader tendered their resignations to Secretary of Defense Robert M. Gates June 5.

"Recent events convince me that it is now time for a new leader to take the stick and for me to move on," said Secretary of the Air Force Michael W. Wynne in a statement. "Therefore I have given my request to resign to Secretary Gates. Even as I do, my heart, my thoughts and prayers remain with America's Airmen who will continue to do magnificent things for this great country."

Air Force Chief of Staff Gen. T. Michael Moseley, who was appointed the 18th Air Force chief of staff in September 2005, has also tendered his resignation.

"Recent events have highlighted a loss of focus on certain critical matters within the Air Force," General Moseley's statement reads. "As the Air Force's senior uniformed leader, I take full responsibility for events which have hurt the Air Force's reputation or raised a question of every Airman's commitment to our core values.

"I think the honorable thing to do is to step aside," the statement continues. "After consulting with my family, I have submitted my request to resign to Secretary Gates. The Air Force is bigger than one Airman, and I have full confidence that the Air Force will continue working with the joint team to win today's fight, take care of its Airmen and meet tomorrow's challenges. I love the Air Force and remain proud of America's Airmen."

Wednesday, June 11, 2008

Committee of Public Accounts: Press Notice: THE PRIVATISATION OF QINETIQ

Committee of Public Accounts: Press Notice: THE PRIVATISATION OF QINETIQ

Publication of the Committee's 24th Report, Session 2007-08

Edward Leigh MP, Chairman of the Committee of Public Accounts, today said:

"The privatisation of Qinetiq has been successful in protecting the viability of this business of strategic importance to UK defence interests. But the MOD conducted the deal like an innocent at a table of cardsharps, with the taxpayer the fall guy losing out on nearly £100 million.

"The MOD pushed ahead with the sale at the worst possible time and then weakened the competition among bidders by eliminating them at too early a stage. Carlyle was appointed preferred bidder with major price sensitive issues still unresolved, leaving that firm with an unbeatable hand in subsequent negotiations about the value of Qinetiq. And then the MOD even refunded Carlyle's bid costs.

"The senior public servants managing Qinetiq behaved dishonourably. They sold the idea to the MOD of privatising the business without explaining they stood to benefit, a serious conflict of interest, and later negotiated their own incentive scheme with Carlyle before that firm was appointed preferred bidder. The design of the scheme contributed towards the top ten managers receiving a return on their own investment of 200 times. This is nothing less than profiteering at the expense of the taxpayer. Never again should public servants be permitted to pursue such a self-interested stratagem.

"Their behaviour does not fill me with confidence that Qinetiq can be relied upon to advise the MOD on what military equipment to buy, if Qinetiq is increasingly in the game of supplying that equipment. The Department must be vigilant to guarantee the impartiality of Qinetiq's advice."

Mr Leigh was speaking as the Committee published its 24th Report of this Session which, on the basis of evidence from the Ministry of Defence, Shareholder Executive and the Chairman of QinetiQ, examined the process by which QinetiQ had been privatised and the lessons that can be learned for future privatisations.

QinetiQ was created out of the Defence Evaluation and Research Agency (DERA) in 2001 as a means of addressing the declining defence research budget, which threatened DERA's ability to maintain its capability. As well as carrying out research for the Ministry of Defence (the Department), QinetiQ advises the Department on the procurement of equipment and manages the testing and evaluation of this equipment.

QinetiQ was privatised in two stages: the sale of a minority stake in the business to the private equity firm the Carlyle Group (Carlyle) in 2003; and a flotation on the London Stock Exchange in 2006. The Department conducted the flotation well in a strong market and used the experience and expertise of the Shareholder Executive to good effect. There were however weaknesses in the 2003 sale process, and the National Audit Office have estimated that the taxpayer could have received £90 million more from the privatisation.

The Department began the competition for a strategic partner when market conditions were poor and before the terms of QinetiQ's most significant contract had been agreed. It also eliminated the only trade bidder at a very early stage. These decisions weakened the competitive process for selecting a strategic partner, and Carlyle negotiated a £55 million reduction in the value of the business after they had been appointed preferred bidder. The Department nevertheless agreed to sell Carlyle 2.5% more of QinetiQ than they had specified in their bid.

The Department failed to manage specific risks relating to the management incentive scheme established as part of the privatisation. The Department relied on Carlyle to design the incentive scheme but did not put safeguards in place to protect its interests, nor did it take specific professional advice. QinetiQ's management were consequently able to influence the design of their incentives before Carlyle were appointed preferred bidder. At the date of the flotation the top 10 managers held shares worth £107 million for an investment of just £540,000.

The privatisation of QinetiQ was successful in protecting the viability of a business of strategic importance to UK defence interests. QinetiQ has balanced the decline in the research budget with revenue from other sources and has successfully expanded into the US defence market. There are, however, risks to the long-term value for money of the privatisation arising from the Department's ongoing relationship with QinetiQ. The Department envisaged that the privatisation would deliver reduced prices and improved services and will need to develop robust benchmarks to ensure it realises this aspiration. The firewalls intended to protect the independence of QinetiQ's advice require active monitoring to ensure they are operating effectively.



VT Group plc (VT) is pleased to announce that it has today signed a final legally binding agreement with BAE Systems plc (BAE Systems) on the formation of a surface shipbuilding and naval support joint venture company to be called BVT Surface Fleet Limited (BVT).

The agreement also includes VT’s acquisition of BAE Systems’ 50 per cent. shareholding in Flagship Training Limited (together with the formation of BVT, the Transactions). The terms of the Transactions are substantially unchanged from those set out in the announcement by VT on 25 July 2007. The principal terms of the agreement are:

• BVT will combine VT’s and BAE Systems’ respective surface warship and through-life naval support businesses, including their respective 50 per cent. stakes in Fleet Support Limited.

• BVT will be owned 45 per cent. by VT and 55 per cent. by BAE Systems.

• VT and BAE Systems will have equal board representation and voting rights in BVT.

• BVT’s dividend policy will be to distribute all of its earnings and VT will receive priority receipt of BVT’s dividends up to March 2010.

• BAE Systems has agreed to provide all further funding requirements of BVT up to an agreed limit.

• Put and call options will be granted as previously announced on 25th July 2007 with a minimum exit price for VT’s interest in BVT of £380 million (subject to certain adjustments).

• On completion of the formation of BVT, VT will acquire from BAE Systems the remaining 50 per cent. of Flagship Training Limited that it does not already own for £65 million (plus interest), payable in three years. A further £10 million will be paid by VT or repaid to VT depending on the performance of the business.

The formation of BVT will be the prelude to a full manufacturing contract for the aircraft carrier (CVF) programme, which will be signed by the UK Ministry of Defence (MoD) and BVT shortly. BVT will also sign a 15 year partnering arrangement with the MoD. This arrangement will guarantee BVT’s leadership of defined future programmes with respect to design, build and through-life support. BVT will operate facilities in Bristol, Glasgow and Portsmouth.

VT and BAE Systems have appointed Sir John Parker as the non-executive Chairman designate and Alan Johnston as Chief Executive designate of BVT. Sir John is also non-executive Chairman of National Grid plc and Mr Johnston was previously Managing Director at AgustaWestland. Both have a wealth of experience in the naval industry and are looking forward to creating a world class business to work in partnership with the Royal Navy and other navies around the world.

VT believes that the Transactions will enable its shareholders to benefit from enhanced visibility of cash dividends from its shipbuilding and naval support businesses. The Transactions also provide VT with the financial flexibility to continue to pursue value enhancing acquisitions which are complementary to VT's support services operations.

The Transactions taken together are expected to be broadly neutral to VT's earnings per share (prior to amortisation, reorganisation costs and fair value adjustments arising from the Transactions)(1).

The Transactions remain conditional on, inter alia, the approval of VT’s shareholders, and no material adverse change having occurred. Regulatory approval has already been obtained from the United States Department of State and the EU.

The approval of VT’s shareholders is to be sought at an Extraordinary General Meeting on June 30 2008. A circular with full details of the Transactions will be sent to VT’s shareholders as soon as possible. The Transactions are expected to complete by the end of June 2008, enabling BVT to start operations on July 1, 2008.

VT Group Chief Executive Paul Lester commented: “The formation of BVT will create a world class provider of naval ships and through-life support that will secure thousands of jobs in the UK and will enable the company to compete effectively for export work.

“Placing our shipbuilding and naval support businesses in a large JV is a major strategic move that will allow us to focus more time on growing our engineering-based support services businesses.

“Securing full ownership of Flagship Training is another important step in this process as we become a major support services organisation.”


• BVT will comprise VT’s surface warship building and naval through-life support operations; each of VT’s and BAE Systems’ 50 per cent. shareholdings in their existing surface warship through-life support joint venture, Fleet Support Limited; and BAE Systems’ Surface Fleet Solutions operations, which includes surface warship building and through-life support businesses.
• BVT will employ over 7,000 people and will have a turnover approaching £1bn per annum.
• Flagship Training Ltd was formed in 1996 when a contract was signed with the UK Ministry of Defence for a partnership with the Royal Navy. Today, Flagship delivers a wide range of capabilities, including training technology solutions, support services, facilities management and construction services.

Tuesday, June 10, 2008

General Dynamics Board Declares Dividend

June 4, 2008
Contact: Kendell Pease
Tel: (703) 876-3093

General Dynamics Board Declares Dividend

FALLS CHURCH, Va. – The board of directors of General Dynamics (NYSE: GD) today declared a regular quarterly dividend of 35 cents per share on the company’s common stock, payable August 8, 2008, to shareholders of record at the close of business on July 3, 2008.

Raytheon Company makes several executive announcements

Raytheon Announces Executive Appointments; Retirement of Louise L. Francesconi
- Louise L. Francesconi to Retire from Company, effective September 1
- Dr. Taylor W. Lawrence Named President, Raytheon Missile Systems
- Mark E. Russell Named VP of Engineering, Technology and Mission Assurance
- Lynn A. Dugle Named VP and Deputy General Manager of Raytheon
Intelligence and Information Systems

WALTHAM, Mass., June 2, 2008 /PRNewswire-FirstCall/ -- Raytheon Company
(NYSE: RTN) made several executive announcements today, including a
leadership transition at the company's Missile Systems business and the
appointment of two new corporate officers.

Louise L. Francesconi has announced her plans to retire from the
company, effective September 1. Succeeding Francesconi is Dr. Taylor W.
Lawrence, 44, who has been named president, Raytheon Missile Systems (RMS),
effective July 1. Francesconi will work with Lawrence as he transitions
into this new role until her retirement date. Raytheon Missile Systems is
headquartered in Tucson, Ariz.

"Taylor's deep technical expertise, operational leadership and process
discipline will serve our customers and our company well as we look to an
exciting future for the Missile Systems business," said William H. Swanson,
Chairman and Chief Executive Officer of Raytheon. "I want to thank Louise
for her outstanding service and congratulate her on a long and
distinguished career. On behalf of the entire company, I wish her all the
best in her pending retirement."

Francesconi is retiring from Raytheon after a distinguished 33 years
with the company. Her expertise in strategic planning, customer focus and
operational excellence has been instrumental in making Raytheon the world's
preeminent producer of advanced missile systems for the U.S. military and
the allied forces of more than 50 countries around the world. Francesconi
will continue to reside in Tucson.

Lawrence joined Raytheon in 2006 and currently serves as vice president
of Engineering, Technology and Mission Assurance at Raytheon Company
headquarters in Waltham, Mass., where he has guided the company's vision
and provided corporate leadership in the areas of technology and research,
engineering, operations, performance excellence, Raytheon Six Sigma(TM) and
Mission Assurance. He has had responsibility for 45,000 engineers across
the company working on more than 8,000 programs.

Prior to joining Raytheon, Lawrence served as a divisional vice
president and general manager at Northrop Grumman. He has also served as
the staff director for the Select Committee on Intelligence for the U.S.
Senate and was deputy director of the Information Systems Office of the
Defense Advanced Research Projects Agency. Lawrence currently serves as
vice chairman of the Air Force Studies Board of the National Academies.

Lawrence holds a bachelor's degree in physics from the California
Institute of Technology and a master's degree in applied physics from
Stanford University. He earned his Ph.D. in applied physics from Stanford
in 1992.

Russell Named Vice President of Engineering, Technology and Mission

Raytheon Company has named Mark E. Russell, 46, vice president,
Engineering, Technology and Mission Assurance, effective July 1. Russell,
who has been elected a company officer by the Board of Directors, succeeds
Dr. Taylor W. Lawrence and will report directly to Raytheon Chairman and
CEO William H. Swanson. In his new role, he will guide the company's vision
and provide corporate leadership in the areas of technology and research,
engineering, operations, performance excellence, Raytheon Six Sigma(TM) and
Mission Assurance. He will have responsibility for 45,000 engineers across
the company working on more than 8,000 programs.

"Mark has the right combination of both leadership and technical
expertise to excel in this new role," said Swanson. "His visionary approach
to technology and demonstrated program performance will be vital elements
to our success and that of our customers."

Russell joined Raytheon in 1983 after graduating from the University of
Massachusetts with a bachelor's degree in electrical engineering. He then
returned to the University of Massachusetts under the Raytheon Advanced
Study scholarship program and earned his master's degree in electrical
engineering. Since starting in design engineering, he has worked in
operations, field testing, project and program management for
state-of-the-art radar, missile and communication systems. His most recent
assignment was vice president, Engineering for Raytheon's Integrated
Defense Systems (IDS) business, where he was responsible for engineering
development, including the capture and management of technology and
advanced programs, production of advanced semiconductor products, and
continuous improvement of processes and tools.

In addition to his professional accomplishments, Russell serves on the
Board of Directors of the National Action Council for Minorities in
Engineering (NACME) and is a senior member of both the American Institute
of Aeronautics and Astronautics (AIAA) and the Institute of Electrical and
Electronics Engineers (IEEE). He has been awarded multiple U.S. patents and
published numerous peer-reviewed technical articles. Russell was the
recipient of the Distinguished Alumni Award from UMass Amherst in 2006 and
inducted into the Francis Academy of Distinguished Engineers at UMass
Lowell in 2001.

Dugle Named VP and Deputy General Manager of Intelligence and Information
Systems Business Raytheon has also named Lynn A. Dugle, 48, vice president, deputy
general manager of Raytheon's Intelligence and Information Systems (IIS)
business, effective July 1. Dugle, who has been elected a company officer
by the Board of Directors, will report to Raytheon IIS President, Michael
D. Keebaugh.

Commenting on Dugle's appointment, Swanson said, "Lynn brings a
tremendous record of achievement to her new role at IIS, where she will
leverage her technical knowledge and leadership skills to deliver
innovative solutions for our customers."

Dugle currently serves as vice president, Engineering, Technology and
Quality for Raytheon's Network Centric Systems (NCS) business, where she is
responsible for the strategic direction, leadership and operations of the

Prior to joining Raytheon in 2004, Dugle held a wide range of
challenging, officer-level positions with ADC Telecommunications. While
headquartered in Australia, Dugle was responsible for leading teams in
Europe and the Asia Pacific region. Dugle's previous international
experience includes managing design and production facilities in Austria
and Argentina.

Dugle began her career at Texas Instruments in 1982 as a program
engineer and rose to vice president of quality for the Defense Systems and
Electronics Group. While at Texas Instruments she held positions in
manufacturing, operations, supply chain management, quality, financial
analysis, strategic planning and productivity programs.

Dugle serves on the Raytheon Australia Board of Directors, the Southern
Methodist University Graduate program Board of Knowledge, and the Texans
Credit Union Board of Directors. She has held prior Board positions with
the Collin County Red Cross, Collin County March of Dimes, and the Dallas
Metropolitan Area United Way.

Dugle earned two degrees from Purdue University, including a bachelor's
degree in technical management, and a bachelor's degree in Spanish. She
earned her master's in business administration from the University of Texas
at Dallas.



MOORESTOWN, NJ, June 5th, 2008 -- Lockheed Martin's [NYSE: LMT] Aegis Ballistic Missile Defense (BMD) Weapon System successfully detected, tracked and intercepted a short- range unitary ballistic missile target in the terminal phase of its trajectory during a test today at the Pacific Missile Range off the coast of Hawaii.

This mission was the first to use the latest version of the Aegis BMD weapon system -- Aegis BMD 3.6.1. – which adds to the proven sea-based missile defense system the capability to defeat short-range ballistic missiles, that have re-entered the atmosphere in their final stage of flight. The system will be certified for U.S. Navy fleet operations later this year.

In the test mission, the SPY-1B radar on the Aegis BMD cruiser USS Lake Erie (CG 70) detected and tracked the ballistic missile target, and computed a targeting solution to guide two SM-2 Block IV missiles to a successful endo-atmospheric (within the atmosphere) intercept. Once the SM-2s were launched from the ship’s Lockheed Martin-developed MK-41 Vertical Launching System (VLS), Aegis guided the missiles through the terminal phase of the intercept. The SM-2 Block IV missiles were recently modified to perform the terminal phase endo-atmospheric intercept of a ballistic missile.

While this event marked the first test in the Missile Defense Agency’s evaluation of Aegis BMD against a ballistic missile in its terminal phase, this is the second Aegis success in the terminal phase. In May 2006, the USS Lake Erie successfully intercepted a short-range ballistic missile in its terminal phase in a Navy-sponsored test using a version of the Linebacker Program first developed in 1998.

In addition to the terminal phase successes, Aegis BMD has 12 successful exo-atmospheric intercepts in 14 attempts in the midcourse phase of flight. Separate from the ballistic missile defense tests, USS Lake Erie’s Aegis BMD Weapon System was temporarily modified and successfully destroyed an errant United States satellite in February.

“Ballistic missiles present different challenges during each phase of flight, and Aegis BMD is proving its full range of flexibility,” said Orlando Carvalho, vice president of Lockheed Martin’s Surface/Sea-Based Missile Defense line of business. “That flexibility reflects the disciplined systems engineering that invented, evolved and continues to develop Aegis capabilities against threats yet to come. Engaging ballistic missiles from the sea in the terminal phase is challenging for both the Sailors who executed this mission and the weapon system they used. Sea-Based Terminal is a critical capability in the Aegis BMD weapon system that provides protection to population centers, our deployed forces abroad, and critical infrastructure.”

The Missile Defense Agency and the U.S. Navy are jointly developing Aegis BMD as part of the United States’ Ballistic Missile Defense System (BMDS). Currently, 12 U.S. Navy Aegis-equipped warships have the ability to conduct long-range search and track, and engage ballistic missiles. Another five Aegis warships are equipped with Aegis BMD long-range surveillance and track capability. By the end of 2008, 15 Aegis destroyers and three Aegis cruisers will have the capability to engage short to intermediate-range ballistic missile threats and support other BMDS engagements using the Aegis BMD Weapon System and the SM-3. The Aegis BMD 3.6.1 tested today will be installed on all U.S. Navy Aegis BMD ships beginning in 2009.

Japan has purchased Aegis BMD capability for its Kongo-class Aegis destroyers, and completed its first successful test of Aegis BMD in December 2007.

The Aegis Weapon System is currently deployed on 85 ships around the globe with more than 20 additional ships planned or under contract. In addition to the U.S., Aegis is the maritime weapon system of choice for Japan, South Korea, Norway, Spain and Australia.

Lockheed Martin is a world leader in systems integration and the development of air and missile defense systems and technologies, including the first operational hit-to-kill missile defense system, Patriot Advanced Capability-3 (PAC-3). It also has considerable experience in interceptor systems, kill vehicles, battle management command, control and communications, precision pointing and tracking optics, as well as radar and other sensors that enable signal processing and data fusion. The company makes significant contributions to nearly all major U.S. Missile Defense Systems and participates in several global missile defense partnerships.



HOLLOMAN AIR FORCE BASE, N.M., June 6th, 2008 -- Ceremonies held at Holloman AFB, N.M., today marked the formal beginning of operations for the Lockheed Martin [NYSE: LMT] F-22 Raptor with the United States Air Force’s 49th Fighter Wing.

"The F-22 is the most advanced and capable fighter in the world," said Larry Lawson, executive vice president and F-22 program general manager for Lockheed Martin Aeronautics. "Now it stands ready at a key location in the United States, prepared to defend America and our allies. The pilots of the 7th, 8th and 301st Fighter Squadrons will fly a weapon system that has the capabilities essential to dominate the air for the next three decades."

The 49th Fighter Wing has made its mark in military aviation history from World War II through every major military engagement to include more than 80 F-117 Nighthawk missions in Operation Iraqi Freedom in 2003. With the arrival of the F-22 Raptor at Holloman AFB, the 49th Fighter Wing is definitely the “home of the stealth fighter.”

A total of 183 production Raptors are currently on contract, and 119 aircraft have been delivered to the U.S. Air Force. The F-22 is the only aircraft that blends speed, super-agility, stealth and sensor fusion into a single air dominance platform. Raptors have been in operational service with the U.S. Air Force since December 2005.

The F-22 is built by Lockheed Martin in partnership with Boeing and Pratt & Whitney. Parts and subsystems are provided by 1,000 suppliers in 44 states. Production takes place at Lockheed Martin Aeronautics facilities in Marietta, Ga.; Fort Worth, Texas; Palmdale, Calif.; and Meridian, Miss., as well as at Boeing's plant in Seattle, Wash. Final assembly and initial flight testing occurs in Marietta.

Raptors are currently assigned to six U.S. bases. Flight testing takes place at the Air Force Flight Test Center at Edwards AFB, Calif. Operational tactics development is ongoing at Nellis AFB, Nev. Pilot and crew chief training takes place at Tyndall AFB, Fla. Operational Raptors are assigned to the 1st Fighter Wing at Langley AFB, Va., the 3rd Wing at Elmendorf AFB, Alaska, and now the 49th Fighter Wing at Holloman AFB, N.M. In the future, Raptors will be based at Hickam AFB, Hawaii.

Headquartered in Bethesda, Md., Lockheed Martin employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation reported 2007 sales of $41.9 billion.



09 Jun 2008 | Ref. 174/2008

ROCKVILLE, Maryland - BAE Systems has completed its acquisition of MTC Technologies, Inc. (MTC Technologies), a Dayton, Ohio-based company providing technical and professional services as well as equipment integration and modernization for the U.S. military and intelligence agencies, after receiving all required shareholder and regulatory approvals. The company announced it had entered into a definitive agreement to acquire MTC Technologies on December 24, 2007 in a transaction valued at approximately $450 million.

The acquisition of MTC Technologies enhances BAE Systems’ position as the premier global defense and aerospace company by growing its business in the United States – one of the company’s six home markets -- and by growing the company’s worldwide services businesses.

Mike Turner, BAE Systems Chief Executive Officer, said: “We are continuing to see the benefits of a well executed global business strategy. The acquisition of MTC Technologies in the U.S. is further evidence of our intention to grow our business organically and by acquisition in each of our six home markets. It will expand our capability in the areas of readiness and sustainment, and makes us an even more effective provider of technical solutions and services.”

“The acquisition expands our capability to meet our customers’ most demanding needs. It will create an organization poised to deliver critical solutions and services to its customers throughout the U.S. Armed Forces and the U.S. intelligence community,” said Walt Havenstein, president and chief executive officer of BAE Systems, Inc.

MTC Technologies and its people become part of BAE Systems’ Customer Solutions operating group, headquartered in Arlington, Virginia, as part of the company’s Technology Solutions & Services (TSS) line of business.

The combination of MTC Technologies and BAE Systems creates a broad, complementary set of offerings, and positions the organization to deliver proven capabilities to a wider spectrum of customers. BAE Systems has long been recognized as a leading provider of solutions and services across a product’s life-cycle for the U.S. Navy, and the addition of MTC Technologies brings a similar expertise in supporting the U.S. Air Force and U.S. Army.

TSS provides services and solutions that support Department of Defense and Federal Agency customers with innovative solutions, anywhere in their product life-cycle, anywhere in the world.

Pursuant to the acquisition, MTC Technologies shareholders will receive $24.00 for each share of common stock held at closing, without interest.



03 Jun 2008 | Ref. 171/2008

Family of Medium Tactical Vehicles
BAE Systems has been awarded $1.65 billion of a potential final contract value of $2.2 billion by the U.S. Army for up to 10,000 Family of Medium Tactical Vehicles. More than 48,000 FMTVs, such as the cargo variant shown above, are in use today by the U.S. Army.

SEALY, Texas - The U.S. Department of Defense has awarded BAE Systems a contract for the supply of up to 10,000 Family of Medium Tactical Vehicles (FMTV), worth up to US$2.2 billion, with US$1.65 billion of funding already agreed. The new contract includes a one year option for the procurement of 10,000 additional vehicles.

“BAE Systems will continue providing the most advanced tactical vehicles to our soldiers and marines,” said Denny Dellinger, president of Mobility and Protection Systems at BAE Systems. "The capacity expansions over the last two years allow BAE Systems to properly team with U.S. Army Tank-automotive and Armaments Command (TACOM), and Defense Contract Management Agency to meet the pressing truck and trailer needs of the US Army."

FMTV trucks are Long Term Armor Strategy (LTAS) configured cargo trucks, wreckers, expansible vans, shop vans, tractors, load handling systems, High Mobility Artillery Rocket System support vehicles and Low Velocity Air Drop configured trucks. BAE Systems’ LTAS is the newest version of FMTV. It is designed to accept an adaptable armor system offering high levels of protection when required. Additional elements of the contract include program support, engineering, integrated logistics support, configuration management and field service support.

More than 48,000 FMTV trucks and trailers are in service with the U.S. Army. The commonality of parts among FMTVs includes shared engines, transmissions, power trains, tires and cabs. This commonality significantly reduces the logistics burden, and operating and support costs for the U.S. Army. FMTVs have set new tactical vehicle standards for capability, reliability, mobility, protection and transportability.

“Today’s $1.65 billion contract announcement by the Army is great news for BAE Systems’ 2,500 Texas-based employees, the city of Sealy, the State of Texas, and most importantly to our soldiers in theatre,” said Senator Kay Bailey Hutchison (Republican - Texas). “BAE Systems delivers outstanding tactical vehicles for our soldiers on time and on schedule and their product dependability is vital to the success of our military personnel as they carry out their mission at home and abroad. As always, I applaud the hard workers in Sealy and their work in support of our troops.”

Production of the LTAS cargo vehicles will be performed at BAE Systems’ facility in Sealy, Texas and Cincinnati, Ohio. Deliveries of the base contract are expected to be complete by February 2010 and deliveries of the option, if exercised, will be complete by November 2010.

“This contract is a great testament to our 2,500 strong, dedicated and skilled Texas-based workforce and our Government colleagues with whom we jointly work for the benefit of our Armed Services,” said Chris Chambers, vice president of Medium/Heavy Vehicles for BAE Systems. “It will utilize our expanded production capacity in Sealy, Texas along with our Cincinnati, Ohio vehicle armoring operations to uniquely position us to respond to the increasingly complex needs of our customer.”

BAE Systems employs more than 2,400 people in Sealy, Texas and has 900,000 square feet of manufacturing and office space on approximately 200 acres. The location has a long history with wheeled vehicle products. It has established itself as a world-class designer, volume manufacturer and through-life supporter of high-quality, best value, military tactical trucks and wheeled vehicle systems with payload capacities from 2.5 to 18 tons. Today, BAE Systems is the exclusive manufacturer of FMTVs and the producer of three Mine Resistant Ambush Protected (MRAP) variants, the Caiman, the RG33 and the RG31. The Caiman is manufactured in Sealy.

In Cincinnati, Ohio, BAE Systems employs more than 1,600 people and has almost one million square feet of manufacturing and office space. The Cincinnati operations has played a vital role in both the Caiman and RG33 MRAP programs by providing armor systems for both vehicles, as well as the FMTV. Other products include up-armored vehicles, commercial armored vehicles, integrated armor kits and accessories for a full range of tactical wheeled vehicles, combat vehicles and construction equipment. The Cincinnati operations also include a state-of-the art ballistic glass plant.

Gates Announces Recommendations on Senior Air Force Leadership Positions

Gates Announces Recommendations on Senior Air Force Leadership Positions

American Forces Press Service

WASHINGTON, June 9, 2008 – Defense Secretary Robert M. Gates has recommended that President Bush nominate Michael B. Donley, the Defense Department’s director of administration and management, to be the next secretary of the Air Force and Air Force Gen. Norton A. Schwartz, commander of U.S. Transportation Command, to become Air Force chief of staff.
Donley would replace Michael W. Wynne, and Schwartz would replace Gen. T. Michael Moseley, both of whom resigned last week in the wake of a report critical of the service’s oversight of its nuclear weapons program.

In a statement released this morning, Gates described Donley’s current position as being “essentially charged with running the Pentagon and its many complex operations,” and noted that Donley served as assistant secretary of the Air Force for financial management in the first Bush administration and, for a period, as acting secretary of the Air Force.

Gates also recommended that the president designate Donley as acting Air Force secretary, effective June 21.

As commander of TransCom, Schwartz is in charge of the Defense Department’s extensive transportation network and worldwide operations. He has served in senior joint military positions as director of the Joint Staff, director for operations for the Joint Staff, and deputy commander of U.S. Special Operations Command, Gates noted in his statement.

The defense secretary also has recommended that Gen. Duncan J. McNabb, Air Force vice chief of staff, succeed Schwartz at TransCom. McNabb has spent most of his three-plus decades in the Air Force in the areas of lift, refueling and logistics, “making him an ideal candidate to assume the helm of this command,” Gates said in his statement.

The secretary also is recommending that the president nominate Lt. Gen. William M. Fraser III, assistant to the chairman of the Joint Chiefs of Staff, to follow McNabb as the next Air Force vice chief. In his current position, Fraser is the chairman’s chief liaison and advisor on international relations and political-military matters. “In addition to his numerous flying and command assignment in the bomber community, General Fraser has extensive wartime, contingency and humanitarian relief operational experience,” Gates said in the statement announcing his recommended nominations.

“I am confident that Mike Donley, General Schwartz and the new Air Force leadership team have the qualifications, skill and commitment to excellence necessary to guide the Air Force through this transition and beyond,” the statement concluded.

Thursday, June 5, 2008

Commentary: Ministry of Defence (MoD) Defence Plan including the Government's expenditure plan for 2008-2012

Today saw the release of The Ministry of Defence (MoD) Defence Plan including the Government's expenditure plan for 2008-2012 (Cm 7385). The document reflects the outcome of the 2007 Comprehensive Spending Review where all Government Departments make their bid for resources based on needs and performance. A senior Group of Ministers arbitrate over these competing demands to determine ultimately who gets what. For the Ministry of Defence, there are a number of interesting nuances in the Defence Plan which illustrate the evolving defence priorities of the Brown adminstration:

Defence Policy (Pages 18-19)
* The Defence Plan suggests a much greater focus on Africa, no reference to America's Global War on Terror (GWOT) and in terms of current commitments in Iraq and Afghanistan "Support work to deliver a downtrend in the number of conflicts globally"

Future Capabilities (Page 23)
* FRES (Future Rapid Effects System) seems to have been renamed (Joint Medium Weight Capability) or else abandoned from the list.
* Carrier Strike (CVF) remains the only large new platform system on the list which is just entering the manufacturing phase.
* The successor nuclear deterrent is the only significant (in expenditure terms) programme on the list reflecting budgetary pressures.

Defence Industrial Strategy (Page 25)
* The two paragraph discussion draws a line under the valiant efforts of former MINDP, Lord Drayson and the Ministry is now moving onto a more 'tactical' programe for dealing with its suppliers under the acronym PACE - a take on one of Cabinet Secretary's descriptors for Civil Service ethos.

Spending plans - the numbers (Page 49)
* The blanks in the planned budget for peace keeping and operations reflect a combination of information classification plus no quantum on the likely costs, however 2008-09 is likely to be 50% higher (£2.2bn versus £1.5bn in 2006-07). Extrapolating these numbers, without changes in commitments, suggests that the costs of operations by 2010-2011 would be in the order of £4.8bn which would be unsustainable.

* The budget for Defence Equipment & Support (DE&S) is anticipated to rise through the period with little cuts in the other Top Level Budgets (TLBs) suggesting that either more money is available at a time fo economimc hardship, or it is a political sop, being the only spending category which can be rapidly changed to meet the prevailing political winds.

Monday, June 2, 2008

Response to Michael Smith of The Times newspaper defence blog item on June 1st, 2008

Posted in response to Michael Smith of The Times newspaper defence blog item on June 1st, 2008, "The Winners and Losers from the MoD's £2bn Black Hole, or Do I Mean the Losers and the Losers?"

Every twenty years there is a defence programme of such scale all else bows before it. The RAF through the 1990s endured bureaucratic attacks on Eurofighter and its relevance in the wake of the end of the Cold War - whilst the Navy and Army suffered cuts in their plans. The same is now happening with the CVF (future aircraft carrier).

People are forgetting two issues. Firstly, the "smaller but better" mantra of a decade ago - the peace dividend of the 1990s was widely seem as an error, which, when coupled with increasing propensity of the Labour administration to use the armed forces without reinstating funding has created the funding gap. Despite this the MoD has viliantly succeeded in reinvigorating the RAF (just look at where it was post-1991 in terms of the size of fleet and complexity of supporting it).

The current situation is more problematic - FRES probably needs to be fundamentally re-visited and its technologies integrated into the array of vehicles being puchased under UOR's. What is essential right now are more helicopters - the fiasco surrounding the £200m wasted on eight chinooks was near criminal in nature - and is being redressed.

Of greater concern to the Royal Navy, and flagged by others are the cuts to the frigate fleet being made to preserve CVF - after all, a CVF cancellation (unacceptable to the RN, MoD, Westminster and the unions) does not result in the RN getting £4bn to reallocate elsewhere. The Future Surface Combatant programme requires more protection, as does the Astute programme. Challenging issues.

A historical lesson from the 1960s, when the RN lost its last aircraft carrier procurement was that it was the economy - a series problems followed by IMF intervention - which did for the best laid plans of the Ministry.


MARS: New support for Royal Navy gets one step closer

New support for Royal Navy gets one step closer

21 May 08
The Ministry of Defence has taken another step towards the procurement of a new fleet of tankers to support the Royal Navy on operations worldwide it was announced today, Wednesday 21 May 2008.

Baroness Taylor, Minister for Defence Equipment & Support, has provided Parliament with details of the four companies who will work alongside the Department over the coming months to finalise the requirement for the new MARS (Military Afloat Reach and Sustainability) Fleet Tankers. The four companies are Fincantieri (Italy); Hyundai (Republic of Korea); Navantia (Spain) and BAE SYSTEMS with BMT DSL and DSME (Republic of Korea).

Following the competition, the Ministry of Defence will make a final decision to select one of the companies to design and build the new ships:

"We have set a worldwide competition for the design and build of these new Fleet Tankers and have now selected four companies with whom we look forward to working to develop our plans further," said Baroness Taylor.

"These four companies have demonstrated the capability and capacity to deliver in the timescales we need. We will be testing their proposals for Value for Money through the competition.

"The new Fleet Tankers being built as part of the Military Afloat Reach and Sustainability programme will allow the full range of Royal Navy operations to continue around the globe."

"The new Fleet Tankers being built as part of the Military Afloat Reach and Sustainability programme will allow the full range of Royal Navy operations to continue around the globe."
Baroness Taylor, Minister for Defence Equipment & Support

MARS is a major project for Defence, providing future logistic support requirements for the Royal Navy and sea-based support to deployed forces. It will replace a large number of existing Royal Fleet Auxiliary vessels. The existing Royal Feet Auxiliary tankers play a vital role in global naval operations by replenishing Royal Navy warships with ship and aircraft fuel, and wider armed forces with fuel and supplies.

The new fleet tankers being built as part of the MARS programme will comply with the highest international environmental standards while also providing a much improved working environment for the Royal Fleet Auxiliary personnel as well as allowing the full range of Royal Navy operations to continue around the globe for 25 years from their launch.

MARS currently consists of three elements: Fleet Tanker, Fleet Solid Support(FSS) and Joint Sea Based Logistic vessels (JSBL). The three classes will be procured incrementally, concentrating initially on the double hulled Fleet Tankers which are urgently required in order to comply with International Maritime environmental standards. The FSS and JSBL vessels are not being committed at this stage, in order to maintain flexibility within the programme. The Fleet Tanker requirement is for up to six ships.

None of the four bidders have indicated to date that they would build Fleet Tankers in the UK. This reflects the fact that UK capacity is taken up by Type 45 and the Future Aircraft Carrier. Later elements of the MARS programme may provide opportunities for UK industry but no decisions have been made on how these later ships will be procured.

Thales UK announces senior management positions

Thales UK announces senior management positions
28 May 2008
Thales UK announces the appointment of Mark Barclay as the new Vice President and Managing Director of Thales' aerospace business in the UK.
With more than 25-years experience in Thales and a comprehensive background in the aerospace industry, Mark has more recently spent the last 18 months as Vice President of Operations for Thales UK responsible for all operational activities related to the UK businesses.

Prior to this Mark was Managing Director of Thales' Aerospace Services Worldwide (ASW) business based in Toulouse, France. ASW is a global avionics and in-service entertainment service and support provider to the world's airlines and aircraft manufacturers. Subsequently, Mark brings a wealth of civil aerospace market knowledge and expertise to a growing business area for Thales UK.

Thales UK's aerospace business provides high-quality prime contractor and systems integrator services, innovative equipment, systems and sub-systems to the world's civil and military sectors. In his new position Mark will continue to shape Thales' future in aerospace, both in the civil and defence fields, in the UK and in its export markets.

Shaun Jones joins Thales UK as Vice President of Operations, replacing Mark Barclay. With 25-years industrial and business experience gained working in the aerospace and defence sector at major organisations including Airbus and BAE Systems, he brings a wealth of experience to the UK team.

Shaun joins us from the Thales UK's aerospace business where he has been working as the Operations Director responsible for all activities within the civil and military domains at our Crawley, Raynes Park and Leicester sites.

Thales UK is also pleased to announce the appointment of Phil Naybour as Vice President, Future Strategic Tanker Aircraft (FSTA) programme. In March 2008 the AirTanker consortium (Cobham, EADS, Rolls-Royce, Thales UK and VT Group) signed a 27-year contract with the UK Ministry of Defence (MoD) for the provision of an advanced air-to-air refuelling and air transport capability for the Royal Air Force (RAF) under the FSTA programme.

In this new role Phil will be responsible for managing Thales' participation within the FSTA programme. Phil has over ten years experience is senior management positions including recently spending four years as Vice President of Thales' global helicopter solutions Business Line.



Defence and support services company VT Group has strengthened its position as one of the UK’s leading military training organisations following the announcement that its Ascent 50-50 Joint Venture with Lockheed Martin has signed a contract for the UK Military Flying Training System (UKMFTS).

The 25-year programme will make Ascent the Ministry of Defence’s Training System Partner (TSP) to provide comprehensive training to all UK military air crew for the Royal Navy, Royal Air Force and Army Air Corps. This will range from fast jet pilots and weapons systems operators to rotary and multi-engine pilots and all rear crew disciplines.

The total programme value is estimated to be worth up to £6 billion over the 25 years with initial contract value around £600 million to Ascent. Additional capabilities will be added incrementally over the life of the programme.

Ascent will start by carrying out a training needs analysis and providing a Ground Based Training Environment (GBTE) for the Hawk 128 Advanced Jet Trainer at RAF Valley. This will include sub contracting VT Support Services to project manage the construction of new facilities, while VT Communications will also provide related ICT infrastructure.

VT Group Chief Executive Paul Lester commented: “UKMFTS is a major programme for VT and extremely important for UK military air crew. It also consolidates our position as one of the MoD’s leading partners in defence support services.”



FORT WORTH, Texas, May 29th, 2008 --

Tethered to a specially instrumented hover pit with its powerful engine running, the
F-35B Lightning II tests its propulsion system in short takeoff/vertical landing (STOVL) mode on May 25 at Lockheed Martin in Fort Worth, Texas. The F-35B will be the world's first supersonic stealth fighter with STOVL capability.

The shaft-driven lift fan propulsion system that will enable the Lockheed Martin [NYSE: LMT] F-35B Lightning II stealth fighter to perform short takeoffs and vertical landings (STOVL) operated for the first time in the aircraft during ground testing on Sunday, May 25. At full power, the F-35B's system generates more than 40,000 pounds of lifting force, or about 170 percent more than current-generation STOVL fighters.

Pilot Graham Tomlinson of BAE Systems performed two conversions from conventional (wing-borne) to STOVL (jet-borne) mode with the aircraft anchored to a specially instrumented hover pit at Lockheed Martin’s STOVL Operations Test Facility. The F-35B is conducting a final series of ground tests before its first flight in the coming weeks.

"The F-35B's STOVL propulsion system operated exactly as expected, providing the power output that our models forecast and transitioning very smoothly from conventional to STOVL-mode and back," said Bobby Williams, Lockheed Martin vice president and F-35 deputy program manager. "We expect the same kind of seamless transition when the F-35B begins STOVL-mode flights in early 2009."

The F-35B combines the profound advantages of stealth and supersonic speed with the ability to operate from small ships and austere bases near front lines.

The F-35B STOVL propulsion system has logged more than 1,900 hours of operation on test stands. In 2001 the X-35B, a proof-of-concept STOVL aircraft using a prototype of the same propulsion system, completed 14 short takeoffs, 17 vertical takeoffs and 27 vertical landings. On July 20, 2001, the X-35B became the first aircraft in history to perform a short takeoff, accelerate to supersonic speed in level flight and descend for a vertical landing in a single mission.

The STOVL propulsion system comprises a Pratt & Whitney F135 turbofan engine, a drive shaft leading from the engine face to a gear box and clutch connecting to a counter-rotating Rolls-Royce lift fan located directly behind the cockpit, a 3-bearing swivel duct at the rear that vectors the engine thrust downward and provides yaw control, and a roll nozzle under each wing for lateral stability.

During the conversion from conventional flight to STOVL flight, all doors associated with the STOVL propulsion system begin to open including the lift fan inlet and exhaust doors, the roll-nozzle doors, the auxiliary-inlet doors atop the fuselage (providing increased efficiency to the main engine) and the aft fuselage 3-bearing swivel duct doors. The 3-bearing swivel duct begins vectoring engine thrust downward as well. Once all doors are open, the clutch engages and the lift fan begins turning. As the lift fan reaches full speed the clutch locks, providing a direct physical connection between engine and lift fan. The aircraft control laws then begin using the STOVL propulsion system to provide aircraft flight control. The system operates automatically at the touch of a button.

The F-35B will operate in conventional mode during its initial series of flights to evaluate overall flying qualities and airworthiness. In preparation for the F-35B’s first flight, pilot Tomlinson flew the F-35A for the first time on May 28, assessing the aircraft’s handling at various power settings. In early 2009, the F-35B will conduct initial STOVL flight operations before moving to Naval Air Station Patuxent River, Md., for further testing.

Sunday's test marked the first use of the newly constructed hover pit and its supporting facilities. "Our aim is to retire technical risk well before we deliver F-35s to the fleet," Williams said. "Our investment in facilities like the hover pit are helping us do just that while building confidence in the test program."

The F-35 Lightning II is a supersonic, multi-role, 5th generation stealth fighter. The three F-35 variants are derived from a common design and use the same sustainment infrastructure worldwide to replace at least 13 types of aircraft for 11 nations, making the Lightning II the most cost-effective fighter program in history.

Lockheed Martin is developing the F-35 with its principal industrial partners, Northrop Grumman and BAE Systems. Two separate, interchangeable F-35 engines are under development: the Pratt & Whitney F135 and the GE Rolls-Royce Fighter Engine Team F136.



DALLAS, TX, May 28th, 2008 -- The U.S. Army today activated the first battery of the Terminal High Altitude Area Defense (THAAD) Weapon System, developed by the U.S. Missile Defense Agency and produced by Lockheed Martin [NYSE: LMT], in a ceremony at Fort Bliss, TX.

Alpha Battery/4th Air Defense Artillery Regiment, 11th Air Defense Artillery Brigade, 32nd Army Air & Missile Defense Command will receive 24 THAAD interceptors, three THAAD launchers, a THAAD Fire Control and a THAAD radar as part of the initial fielding. In addition, the battery will have logistics support assets, such as the Battery Support Center and Integrated Contractor Support System, as well as the necessary spares for a fielded unit.

"This is a historic day for the U.S. Army’s Air Defense community," said Tom McGrath, program manager and vice president for THAAD at Lockheed Martin. "The first battery receiving the THAAD Weapon System signifies that we are one step closer to the day THAAD will be protecting our Soldiers, friends and allies around the globe."

The A4 Battery is receiving the THAAD Weapon System now to allow the unit to prepare for full-system fielding beginning in 2009. Unit training on the THAAD equipment is already underway. The first New Equipment Training Classes began in April, and the battery is well on its way to creating an operational unit.

"The THAAD Weapon System is enjoying excellent success in this current development phase," McGrath continued. "THAAD’s precision engagement capabilities, combined with the power of the hit-to-kill engagement, offer the Warfighter tremendous protection from the threats of today and tomorrow. Soldiers from Fort Bliss have successfully operated the THAAD system in flight testing for two years, and will continue as flight testing progresses."

THAAD flight testing continues later this year, with two flights scheduled before the end of Fiscal Year 2008 in September and two during FY09, which commences October 1. Since November 2005, the THAAD Weapon System program has conducted seven successful flight tests, including four tests involving the successful intercept of threat representative targets.

A production contract for the first two fire units was awarded to Lockheed Martin in late 2006. THAAD launcher and fire control and communications unit production will take place at Lockheed Martin’s manufacturing facility in Camden, AR. Interceptor production is conducted at Lockheed Martin’s Pike County Facility in Troy, AL.

THAAD is designed to defend U.S. troops, allied forces, population centers and critical infrastructure against short- to intermediate range ballistic missiles. THAAD comprises a fire control and communications system, interceptors, launchers and a radar. The THAAD interceptor uses hit-to-kill technology to destroy targets, and THAAD is the only weapon system that engages threat ballistic missiles at both endo- and exo-atmospheric altitudes.

A key element of the nation’s Ballistic Missile Defense System (BMDS), THAAD is a Missile Defense Agency program, with the program office located in Huntsville, AL. The agency is developing a BMDS to defend the United States, its deployed forces, friends and allies against ballistic missiles of all ranges and in all phases of flight.




Bwthesda, MD, May 23rd, 2008 -- Lockheed Martin [NYSE:LMT] has completed its acquisition of Atlanta, Georgia based Eagle Group International, LLC. Eagle Group provides logistics, information technology, training and healthcare services to the U.S. Department of Defense.

Founded in 1995, Eagle Group employs more than 1,350 people. Its proven capabilities in military readiness and integrated logistics, healthcare program management and outsourcing, information technology, and training services have enabled it to develop a reputation for outstanding support of its customers' critical missions. Eagle's revenue is generated mainly from work done for the U.S. Army.

The acquisition was originally announced April 28, 2008. All obligations associated with Eagle Group's U.S. Department of Labor Job Corp Contract were excluded from the transaction. Other terms of the transaction were not disclosed.

Northrop Grumman Names Robert Klein Vice President To Lead Maritime System Market Initiatives

Northrop Grumman Names Robert Klein Vice President To Lead Maritime System Market Initiatives

BETHPAGE, N.Y., May 21, 2008 (PRIME NEWSWIRE) -- Northrop Grumman Corporation (NYSE:NOC) has appointed Robert W. Klein vice president of Maritime and Tactical Systems (M&TS). He manages both the diverse range of current products in the M&TS portfolio and the development of new products for this domestic and international market segment.

Klein leads a team that integrates sensors, systems, platforms, weapons, and networks into unique products. It is developing and producing several systems that detect or destroy mines at sea or on the beachheads; a new, high-speed combat craft with battle management capabilities; and, they are helping the U.S. Navy package some of these and many other systems into roll-on/roll-off packages of weapons and sensors for the distinct missions of the new Littoral Combat Ships.

Klein joined Northrop Grumman in 1974 as an intern upon winning a Northrop Grumman Scholarship. Early in his career, Klein worked on the X-29 Forward Swept Wing demonstrator and various classified programs. Later, he became F-14 program chief engineer and then Engineering director for all programs. Most recently, he was vice president of Engineering, Logistics and Technology for what was the Airborne Early Warning and Electronic Warfare (AEW & EW) Systems business area, overseeing the more than 2,000 engineers who staffed the Advanced Hawkeye, EA-6B Prowler and other programs.

Klein earned a bachelor's degree in mechanical and aerospace engineering from Princeton University and a master' s degree in aeronautical engineering from Massachusetts Institute of Technology. He also attended the Executive Development Program at Stanford University.

Retired Admiral Thomas B. Fargo Joins Northrop Grumman Board Of Directors

Retired Admiral Thomas B. Fargo Joins Northrop Grumman Board Of Directors

LOS ANGELES - May 21, 2008 - Northrop Grumman Corporation (NYSE:NOC) announced today that retired U.S. Navy Admiral Thomas B. Fargo has been elected to the company's board of directors.

With the retirement of board member Philip A. Odeen, Northrop Grumman's board totals 11 members, 10 of whom are non-employee directors.

"Tom Fargo's 35 years of naval leadership and his subsequent private sector experience give him a global perspective that makes him an outstanding addition to our company's board," said Ronald D. Sugar, chairman and chief executive officer of Northrop Grumman.

Fargo served as commander of the U.S. Pacific Command leading the largest unified command while directing the joint operations of the Army, Navy, Marine Corps and Air Force from May 2002 until his retirement from the United States Navy in March 2005. He was responsible to the President and the Secretary of Defense through the chairman, Joint Chiefs of Staff and was the U.S. military representative for collective defense arrangements in the Pacific.

His naval career included six tours in Washington, D.C., in addition to five commands in the Pacific, Indian Ocean, and Middle East, which included serving as Commander-in-Chief of the U.S. Pacific Fleet and Commander of the Naval Forces of the Central Command.

Fargo is president and chief executive officer of Hawaii Superferry as part of his duties as managing director of J.F. Lehman & Company. Previously, he served as president of Trex Enterprises Corporation.

He serves on the boards of directors for Hawaiian Electric Industries, Hawaiian Airlines and USAA. He also serves on the board of directors of the Japan-America Society of Hawaii, the I'olani School Board of Governors, and the Hawaii Pacific University Board of Trustees. Fargo is the national vice chairman of the Pearl Harbor Memorial Fund.

He is a graduate of the U.S. Naval Academy.

Boeing Names Elizabeth Lund to Lead Commercial Airplanes Product Development

Boeing Names Elizabeth Lund to Lead Commercial Airplanes Product Development

SEATTLE, May 23, 2008 -- Boeing [NYSE: BA] today announced that Elizabeth Lund has been named vice president of Product Development for Boeing Commercial Airplanes. Lund will be responsible for leading preliminary design of new and derivative airplanes and systems, and environmental performance strategy. Lund also will manage the overall research & development plan across Commercial Airplanes, and support the Product Strategy and Advanced Technology organizations within Commercial Airplanes and Phantom Works. The position reports to Boeing Commercial Airplanes Engineering Vice President Mike Denton.

Lund, 43, succeeds Todd Zarfos, who was recently named vice president of 747/767/777 Engineering.

"Elizabeth Lund brings a wide range of skills and background in both engineering and manufacturing to the product development team," said Denton. "By leveraging her broad experience, she will continue the outstanding work Todd Zarfos and his team have done to ensure our Commercial Airplanes product development strategy is forward-looking and competitive."

Since June 2005, Lund has served as director of Boeing 777 Manufacturing in Everett, Wash. In Nov. 2006, Lund and her team started using a moving assembly line to build the long-range twin-engine airplane family.

Prior to that, Lund was the director of the Boeing Interiors Responsibility Center (IRC). The IRC designs, manufactures, assembles and integrates a wide range of interior systems for production, aftermarket and spares for Boeing commercial jets. She also served as the director of Business Operations and Supply Chain Management for Boeing's Fabrication Division, where she was responsible for strategy development, work statement management, strategic work placement, and integration of division wide initiatives.

Lund joined Boeing in 1991 as a payloads engineer and has held various assignments in Engineering, including 737 deputy chief project engineer, 737 airplane level integration leader, 737 interiors chief engineer, and senior manager for multi-model passenger and attendant seats.

Lund holds a bachelor's degree in Mechanical Engineering from the University of Tulsa as well as a master's degree in Mechanical and Aerospace Engineering from the University of Missouri.

Boeing KC-767 Tanker: Capability Where it Counts

Boeing KC-767 Tanker: Capability Where it Counts
ST. LOUIS, May 22, 2008 -- With advantages identified by the U.S. Air Force in the areas of mission capability, survivability, aerial refueling technology, operational utility and ability to respond to real-world mission scenarios, the Boeing [NYSE: BA] KC-767 is the best tanker for the future conflicts anticipated by the U.S. Defense Department.

"U.S. Secretary of Defense Robert Gates recently stated that the wars of the future will resemble the current conflicts in Iraq and Afghanistan," said Mark McGraw, vice president, Boeing Tanker Programs. "Therefore it follows that the KC-767 tanker is the ideal plane for future conflicts. It has the ability to operate out of smaller forward airfields to efficiently and effectively serve our warfighters, take advantage of existing infrastructure close to expected hot spots and do it all with a more capable, lower-cost, lower-risk, more survivable tanker."

Secretary Gates said in a speech earlier this month that, "the kind of capabilities we will most likely need in the years ahead will often resemble the kinds of capabilities we need today." He added that, "any major weapons program, in order to remain viable, will have to show some utility and relevance to the kind of irregular campaigns that...are most likely to engage America's military in the coming decades."

A costlier, riskier tanker put forth by the team of Northrop Grumman and the European Aeronautic Defence and Space Company (EADS) was chosen by the Air Force Feb. 29 as the replacement for the aging fleet of medium-sized KC-135s that met U.S. military requirements through the Cold War, Vietnam and Desert Storm. The same aircraft are providing aerial refueling to American and allied forces today in Afghanistan and Iraq.

The Air Force Request for Proposals seemed to call for a medium-sized tanker designed to meet the unique needs of today's expeditionary Air Force. During the evaluation of the two 
offerings, 98 positive discriminators, or strengths, were identified for the KC-767 compared to 30 for the Airbus A330-based plane.

"The Boeing KC-767 offered much more in terms of capability for bringing the right number of right-sized planes and the right amount of fuel to the fight," McGraw said. "The top strengths of the KC-767 drive home the superiority of the Boeing plane for this mission."

According to the KC-X evaluation, top discriminators in the areas of capability, aerial refueling technology, real-world operations, survivability, operational utility and secondary mission capability include:

* The ability to refuel multiple types of aircraft, including the V-22 Osprey tiltrotor aircraft
* Ability to isolate, transport and off-load multiple fuel types
* Less fuel burned, less foreign bases required and less sensitive to geo-political base denials in operational scenarios
* Fuel tank and ballistic threat protection
* Aerial refueling operator station
* Ability to carry higher weight cargo on the main deck
* Ability to carry hazardous material on the main deck
* Aeromedical crew displays and the ability to generate therapeutic patient oxygen
* Advanced communication and navigation capabilities and future growth potential

Boeing Begins P-8A Moving Assembly Line

Boeing Begins P-8A Moving Assembly Line
ST. LOUIS, May 20, 2008 -- The Boeing Company [NYSE: BA] last week began using a moving assembly line for final assembly of the P-8A Poseidon in Renton, Wash. This military derivative of the Next-Generation 737-800 is expected to move through the final assembly process at a continuous pace similar to commercial 737s.

"This is another important step toward delivering the first P-8A to the U.S. Navy on schedule," said Bob Feldmann, Boeing vice president and P-8 program manager for Boeing Integrated Defense Systems. "The entire team is working extremely hard to meet our commitment to the customer."

Boeing uses the moving assembly line during final assembly positions for the airplane. The P-8s will be positioned in a straight-line configuration on the factory floor and stay at a production station for a period of time before advancing to the next station. Standard processes, visual control systems and point-of-use staging are in place, allowing work to flow continuously and quickly.

"Moving lines are proven to enhance the quality and efficiency of production processes," said Mo Yahyavi, Boeing vice president and P-8 program manager for Boeing Commercial Airplanes. "Boeing has found that moving lines drive out waste and make it easier for employees to solve emergent issues. Problems are more visible, and any employee can stop the line at any time, mustering the help of engineers and other support personnel."

To make the assembly line move during final assembly, Boeing uses a tug that attaches around the front landing gear of the airplane and pulls it to the next position. The tug has an optical sensor that follows a white line along the floor.

The Boeing-led Poseidon industry team is currently under a System Development and Demonstration contract, which includes building five test vehicles: three flight-test and two ground-test aircraft. The first test aircraft will be delivered to the Navy and fly in 2009.
The Navy plans to purchase 108 P-8As to replace its fleet of P-3C aircraft. Initial operational capability is slated for 2013. The Boeing-led Poseidon industry team includes CFM International, Northrop Grumman, Raytheon, Spirit AeroSystems and GE Aviation.

The P-8A is a long-range anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance aircraft capable of broad-area, maritime and littoral operations. The P-8A combines superior performance and reliability with an advanced mission system designed for maximum interoperability in the future battle space.



20 May 2008 | Ref. 166/2008

BAE Systems has today welcomed the announcement by the UK Ministry of Defence that it intends to proceed to the manufacturing stage in the project to build two new 65,000 tonne aircraft carriers (CVF) for the Royal Navy.

The move will enable BAE Systems and VT Group to progress finalisation of the arrangements for BVT Surface Fleet, the Joint Venture (JV) combining their shipbuilding and naval support businesses, following the framework agreement signed in July 2007. BAE Systems and VT Group expect the JV transaction documentation to be signed shortly. The agreement will then be subject to VT shareholder approval.

Chief Executive Mike Turner comments: “This is an important milestone in the development of the CVF programme and plays a major part in the long term sustainability of the UK naval sector and the transformation of our business. The programme will provide a strong order book and forward workload over the coming years and, most importantly will provide our armed forces with significantly enhanced capability.”