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CONTRACT NEWS IN BRIEF

EUROPE

LAND

02 Jan 07. BAE Systems has received a $29.7m contract from the Norwegian Defence Procurement Division for the development and delivery of M113 upgrade kits. The contract calls for the development and production of 72 power pack kits, air conditioning system kits, suspension kits, and track system kits for Norwegian M113 vehicles, plus the provision of logistics support and spare parts.

20 Dec 06. Saab receive first major defence order from Spain. Saab Microwave Systems has signed a contract with the Spanish army for ARTHUR Weapon Locating radars, a training simulator and logistics. The order is worth 476 MNOK (59 MEUR). The order confirms Saab’s position as a world leader within weapon locating and is a breakthrough on the Spanish market. The deal is entered with Saab Microwave Systems AS in Norway who will manage the project and deliver the systems to the Spanish army. The project will be run in close collaboration with Saab Microwave Systems in Sweden. There will also be participants from Spanish industry. Delivery starts at the end of 2007 and the last system is calculated to be delivered in June 2009.

29 Dec 06. Germany: Siemens Joins IBM In Military Deal. IBM and Siemens have won a 7.1bn euro ($9.3bn), 10-year contract to modernize and manage the nonmilitary information technology systems of Germany’s armed forces, the two companies said. (Source: New York Times/Defense News)

Dec 06. Stork and its partners receive the Boxer series production contract. Total value for Stork €0.5bn This morning, in the Bernardkazerne in Amersfoort, the Netherlands, the contract for series deliveries of the Boxer Multi-Role Armoured Vehicle to the Netherlands and German armed forces was signed. The Boxer is a multi-role ‘workhorse’ which in the Netherlands will replace the YPR and M577 vehicles. The Netherlands army will use the Boxer in 5 different versions: an ambulance vehicle, command post, engineer vehicle, and two types of cargo vehicles. The series production contract for the 272 vehicles for Germany and the 200 vehicles for the Netherlands represents a total value of EUR 1,2 billion out of which Stork will receive €0.5bn in the period 2008 to 2016. Up to 70% of Stork’s turnover will be subcontracted. The contract for Stork encompasses a continued design for 2 new Boxer versions, the series production of 200 Boxer vehicles in 5 versions and an initial in-service support package. The Boxer represents the new generation of 8×8 all terrain armoured utility vehicles. The concept of a drive module and an exchangeable mission module makes it a flexible military vehicle for a large range of assignments, providing the highest protection of its class

SEA

03 Jan 07. Fishery protection vessels net new lease of life. The three fishery protection vessels operated by the Royal Navy will patrol UK waters for another five years under a £52m lease-contract extension awarded by the MoD to
VT Group Plc. Portsmouth-based HMS Tyne, HMS Severn and HMS Mersey carry out fishery protection duties on behalf of the Department of Environment, Food and Rural Affairs (DEFRA), with crews of each vessel boarding up to ten commercial ships a day, monitoring net quotas and type. As Royal Navy vessels they also police the UK’s territorial waters on home defence and anti-terrorist tasks. The vessels first entered service in 2003 and today’s contract will extend their duty period from 2008 until the end of 2013. By renewing the contract at this juncture the Ministry of Defence will save £8.1m over five years.

30 Nov 06. Refits: Five Warships and an Auxiliary. The MoD confirmed (30 Nov 06) that five warships are to undergo refits as part of an ‘alliancing strategy’ with Industry. Babcock’s yard at Rosyth has been awarded three of the contracts: the Type 42 destroyer HMS LIVERPOOL and the minehunters HMS CHIDDINGFOLD and GRIMSBY. The Type 23 frigate HMS IRON DUKE is to be worked on by Fleet Support and the Type 22 frigate HMS CUMB

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