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CONTRACT NEWS IN BRIEF

06 Jan 04. In a Ministerial Statement, the Armed Forces’ Minister stated that the Defence Procurement Agency (DPA) had agreed contracts with EADS and Lockheed Martin for a three-year competitive Assessment Phase for GBAD Phase 1. The combined value of the contracts was “around” £85m. Comment: GBAD Phase 1 is for Integrated Ground Based Air Defence (IGBAD), to enhance the Rapier FSC and High Velocity Missile (HVM) systems. The MoD had already (18 Dec 03) given notice that the above contracts had been signed, without mentioning that the competition was now to last three years. When the MoD announced, on 25 Jun 03, that the two companies had been selected to compete the Assessment Phase it was for “a two year competitive assessment”. Self-evidently it can no longer be the case that: “A single contractor to demonstrate and manufacture GBAD will be chosen in late 2005 following conclusion of the Assessment Phase.” Ministerial clarification would be helpful, including an official revision of the 2007 in-service date. (Source: DNA DEFENCE NEWS ANALYSIS Issue 04/03, 12 Jan 04)

06 Jan 04. United Defense Industries, Inc. has been awarded a $15.5m Foreign Military Sales long-lead materials contract for the anticipated follow-on co-production of 21 additional M88A2 HERCULES improved recovery vehicles for Egypt. The production contract for these vehicles is anticipated from the U.S. Army’s Tank-automotive and Armaments Command early in the second quarter of 2004, and will follow United Defense’s current M88A2 co-production effort with the Egyptian Tank Plant (ETP) in Cairo.

12 Jan 04. Terex Corporation’s joint venture, American Truck Company (ATC), just won a deal with the US Army Tank-armaments and Automotive Command (TACOM) to supply Israel’s Ministry of Defence (IMOD) with 302 medium tactical trucks and associated logistics support. ATC plans to deliver the new trucks over the next 12 to 14 months. (Source: CV News Brief Week 3, Monday 12 January 2004)

08 Jan 04. The U.K. MoD has awarded CAE a contract valued in excess of C$9m to upgrade the Medium Support Helicopter Aircrew Training Facility (MSHATF) at Royal Air Force Base Benson in the U.K. In 1997, a CAE-led consortium obtained a contract from the U.K. MoD to design, construct, manage, finance and operate an integrated simulator-based aircrew training facility at RAF Benson. Under the terms of the upgrades contract, CAE Aircrew Training Services plc will improve the training service by providing hardware and software upgrades to the CH-47 Chinook and EH101 Merlin dynamic mission simulators and enhance the MSHATF’s computer-based training systems and courseware.

12 Jan 04. Lockheed Martin has been awarded a blanket purchase agreement by the Virginia Contracting Activity on behalf of the Defense Intelligence Agency (DIA) to provide IT engineering, Intelligence support, and technical services to DIA, the Department of Defense Intelligence Information Systems (DoDIIS) community, and Intelligence Community organizations. The agreement gives Lockheed Martin and its teammates the opportunity to compete for future task orders with six other pre-qualified contractor teams under the DoDIIS Integration and Engineering Support Services Contracts (DIESCON3). As an indefinite delivery indefinite quantity vehicle, DIESCON3 was created to meet the mission needs of community chief information officers and program managers quickly through streamlined, competitively awarded task orders. Although the contract does not specify dollar amounts, DIA has said it expects to award task orders worth about $100m in 2004. The contract period began December 15 and is estimated to run concurrent with Lockheed Martin’s GSA schedule.

12 Jan 04. The Boeing Co., St. Louis, Mo., is being awarded a $37,316,140 firm
fixed price, cost-plus fixed-fee contract. This is the definitization modification of a letter contract and partial incremental change orders (modifications 001801, and 001802) for Low

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