March 22, 2013
The U.S. Department of Defense has awarded British defense contractor BAE Systems (NASDAQOTH: BAESY ) three contracts: Two small, one gigantic, they are worth $797.4 million in aggregate.
The smallest of the three awards, for $15.3 million, is to develop, prototype, and test the Joint Effects Targeting Systems (JETS) Target Location Designation System (TLDS). JETS TLDS is described as being a one-man portable targeting system that will enable infantry forward observers and tactical air controllers to call in fire on hostile targets from indirect munitions such as Joint Direct Attack Munition (JDAM) and Excaliber, as well as to call in close air support. BAE is expected to complete work on this contract by March 17, 2016.
BAE's second small contract went to its Land & Armament division, adding $16.6 million to an existing contract to convert Bradley Reset Vehicles from the M3A3 to the M2A3 configuration. In the M3A3 configuration, the Bradley is used as a scout vehicle. The M2A3 configuration is the more basic Infantry Fighting Vehicle design, and includes external firing ports that are absent in the M3A3 configuration. BAE is expected to complete work on this contract by Aug. 29, 2014.
The really big contract announced Thursday went to BAE's Ordnance Systems division, and provides the firm with $780.8 million in the form of a firm-fixed-price contract to supply Insensitive Munitions Explosives, shells specially designed to withstand exposure to fire, mechanical shock (such as from being jostled around in a moving vehicle occasionally pelted by hostile weapons fire), and other impacts.
BAE's expected completion date on this contract is Sept. 29, 2017.