BAE SYSTEMS CHOSEN AS LAND 121 PREFERRED BIDDER

05 Oct 07. BAE Systems has been selected by the Australian Government as the preferred bidder for one of the largest Australian Army projects for decades, the next generation of medium and heavy tactical trucks and modular payloads. Minister for Defence, The Hon Dr. Brendan Nelson, announced today that the Australian Government will negotiate the final contractual terms with BAE Systems to meet the medium and heavy truck segment of Land 121 Project Overlander.

The Land 121 Project will replace over 3000 of the Australian Defence Force’s tactical trucks over a six year period, commencing 2009. The contract is expected to have a total value of A$1-1.5bn (approx £436m – 653m / US$880m – 1.3bn). In addition to equipment, the contract includes payload modules, technical services and spare parts for the life of the equipment.

Denny Dellinger, President of BAE Systems Mobility & Protection Systems comments: “Building on the strengths of our global capabilities in the land systems sector, these new vehicles will provide much more capable, higher value assets to the Australian Army than those they replace. We are proud of this decision and look forward to developing a strong relationship with the Australian Defence Force through the execution of this strategically important program.”

Following today’s announcement, a BAE Systems Land 121 project office will be established in Adelaide, “Being close to the future location of the 7 RAR battalion group was an important factor in our choice of location”, Dellinger says. “With an already strong presence in Australia, an important home market for our company, we have plenty of capacity in Adelaide to establish our Land 121 team and embed the technology needed to provide cost effective through life support providing skilled jobs for many years.”

BAE Systems Mobility & Protection Systems, formerly Armor Holdings and Stewart & Stevenson, has produced more than 38,000 Family of Medium Tactical Vehicles (FMTV) for the US Army and other defence forces around the world since 1991.

BAE Systems’ business in Australia is committed to being the Australian Defence Force’s through-life capability partner in integrated military systems and support solutions. It combines key skills in engineering and systems integration and is a leading provider of communications, electronic warfare systems, military air support, air defence, mission support systems and intelligence, surveillance and reconnaissance. The Company employs approximately 2,700 people in Australia and supports customers at more than 50 locations in country.

Comment: This is good news for the Stewart & Stevenson segment of BAE which has been pitching for a large export order overseas for some time and builds on the reputation of its truck and systems. Mercedes is expected to be announced as the winner of the light armoured fleet whilst the Land Rover fleet is being relifed to 2020.