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M-ATV Market Update - December 2009

Ceradyne, Inc. has received a multi-million dollar blanket purchase order from Plasan Sasa Ltd., Israel, for the production of armor components for the MRAP All Terrain Vehicle (M-ATV). Ceradyne plans to produce these parts in its expanded armor assembly plant in Irvine, California, for delivery to Oshkosh Corporation, the prime contractor. Oshkosh will assemble [...]

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• MineWolf Systems demonstrated a new mechanical solution developed specifically to meet the requirements of the US Army for operations in Iraq and Afghanistan. The solution is described in the company's press release as "a machine robust enough to survive blasts from heavy anti-tank mines, yet mobile enough to be transportable in a 20ft ISO container or on a C-130 plane". The "Medium MineWolf" machine (MW 330) was presented for the first time in Munich’s city centre at the Military Engineering Summit, Europe's largest gathering of military engineers, procurement officers and equipment and technology providers with over 150 attendees from all over the world looking for latest developments in military engineering. This machine is the latest addition to the MineWolf product range, built in Germany in response to a specific requirement from the US Army for an area mine clearance system for operations in Afghanistan and Iraq. US forces are looking for a capability to safely and quickly clear open ground of land mines and unexploded ordnance while minimizing the risk to soldiers. MineWolf Systems also demonstrated a sophisticated robotic arm attachment which can be mounted on any of their mine clearance vehicles to remotely deal with IED threats. Summit participants saw the robotic arm mounted on their smaller, remote controlled "Mini MineWolf" machine. #
• U.S. Marine Corps completed the integrated test phase of the Advanced Precision Kill Weapon System (APKWS) program Jan. 5, firing five rounds against stationary and moving targets. All five shots hit their intended targets within 2 meters of the laser designator’s spot. APKWS is a low-cost, low-yield alternative to other air-launched munitions currently in inventory. The system transforms a standard 2.75-inch unguided rocket into a smart, highly precise laser-guided missile. Because it uses standard launchers, APKWS requires no platform integration or aircraft modifications, and because it is loaded and fired just like a standard 2.75-inch rocket, very little additional aviator or ordnance crew training is required. Its design enables use of existing warheads, fuzes, and rocket motors, thus protecting government investment in existing inventory. APKWS has been demonstrated off Marine Cobra and Army Kiowa helicopters, and can be fired from any helicopter that can launch 2.75-inch rockets, including the UH-1 Huey, and AH-64 Apache. The Navy recently announced its intention to investigate, in cooperation with the U.S. Air Force, the deployment of APKWS from fixed-wing platforms. The Navy assumed acquisition executive oversight of the program in 2008 and has fully funded it for production. BAE Systems has been the APKWS prime contractor since 2006. #
• Elbit Systems Ltd. was awarded contracts in an aggregate amount of approximately $50 million to supply various types of laser based systems to the Israeli Ministry of Defense and to North American customers. The Israeli MoD will be supplied with laser systems, while in North America, Elbit Systems will supply two different customers with airborne laser systems. The orders were received by Elbit Systems Electro-Optics Elop Ltd. (Elop) and are to be delivered over the next two years. #
• General Dynamics Armament and Technical Products has been awarded an order of approximately $33 million to produce reactive armor tile sets for the Bradley Fighting Vehicle by the U.S. Army. General Dynamics' reactive armor system is composed of tiles that fasten to the exterior of the Bradley Fighting Vehicle, allowing it to better withstand direct hits from a variety of anti-armor munitions. "Our reactive armor package is a light-weight solution that can defeat full-scale, shape-charge threats of modern, long-range anti-tank missiles. Our team in McHenry is proud to produce reactive armor tiles that save lives and prevent severe damage to combat vehicles in Iraq," said Russ Klein, vice president and general manager of weapon systems for General Dynamics Armament and Technical Products. Work will be performed at the General Dynamics' facility in McHenry, Miss., and deliveries are expected to be completed in November 2010. The program will be managed from General Dynamics' Burlington Technology Center in Vermont. The order is an extension of a contract awarded in 2006. A strategic partner, Rafael Advanced Defense Systems Ltd., Ordnance and Protection Division, will share the production workload in Haifa, Israel. General Dynamics Armament and Technical Products is a business unit of General Dynamics (GD). #
• LaBarge, Inc. has been awarded a $2.6 million contract from Northrop Grumman Corporation (NYSE: NOC) to continue to provide electronic subsystems for the MESA (Multi-role Electronically Scanned Array) radar system. The MESA radar is an advanced airborne surveillance radar system used in military aircraft with airborne early warning and control (AEW&C) platforms. Currently flying in the next-generation 737-700 series aircraft produced by The Boeing Company (NYSE: BA), the radar is mounted atop the fuselage and has a long detection range with a 360-degree electronic scan that can simultaneously track air and sea targets, covering the entire operational area with an integrated identification friend or foe (IFF) mode. The MESA radar allows the AEW&C aircraft to operate farther back from the battle lines while it detects and tracks targets in high threat areas. #
• BAE Systems will provide U.S. Army soldiers with handheld laser target locators that will enable them to identify target locations while on foot, in daylight or at night, and in obscured-visibility conditions such as fog and smoke. The company has partnered with Vectronix Inc. to produce, maintain, and provide logistical support for up to 200 laser target locator modules (LTLM) per month under a five-year indefinite-delivery/indefinite-quantity contract worth up to $347 million. Weighing less than 5.5 pounds, the LTLM consists of a direct-view optic system, a night-vision camera derived from the thermal cameras used in BAE Systems’ advanced thermal weapon sights, a laser range finder, a digital compass, and a GPS receiver. The system will allow users to recognize targets more than 4.2 kilometers away in daylight and 900 meters in total darkness. Deliveries are scheduled to begin this year. #
• ITT Corporation has been awarded $43 million in follow-on orders from the U.S. Army’s Research, Development and Engineering Command Acquisition Center for the Enhanced Night Vision Goggle (ENVG), and associated spare parts. ENVG optically combines an image intensification image, and proven thermal infrared technology, allowing for improved mobility and situational awareness—through clear target detection and improved target recognition. The ENVG combines the strengths of both technologies into one helmet-mounted unit, allowing warfighters to complete their missions more effectively, even when confronted by low-light or obscured conditions. #
• AOptix Technologies MX-15 Skyball (seen here mounted to a P-68 Observer airplane) conducted recent air to ground wireless downlinks for the Air Force at 3.0Gbps of optical bandwidth. Covering an effective ground area of over 15,000 square kilometers, the single bi-directional, 3 Gbps multi-channel data link transmitted simultaneous uncompressed high-definition (HD) video, audio and gigabit Ethernet. The recent demonstrations quantified end-to-end link performance over various spatial geometries, altitudes, and ground terminal positions while maintaining a low power, eye safe communications link. This technology has enabled AOptix to demonstrate air to ground ultra-high bandwidth links greater than 70 kilometers flying at 10,000 feet and mountain top to mountain top links in excess of 150 kilometers. #
• BAE Systems is participating in the tender for the U.S. Government contract to produce the next generation of medium tactical vehicles for the U.S. Army. The contract will be awarded in July for an estimated 12,400 vehicles and 10,900 trailers to be delivered to the U.S. Army from 2010 through 2014. BAE Systems won the U.S. Government contract to produce the replacement for the U.S. Army’s aging fleet of M-939 and M-35 cargo trucks in 1991. Since then, more that 53,000 FMTVs and trailers have been produced in 21 variants in the high-quality facility in Sealy, Texas. The FMTV is the medium tactical vehicle platform of choice for the U.S. Army and performs a variety of roles from cargo and troop carrier, to shop and cargo van carrier, to artillery and air defense missile weapons carrier. The vehicle has proven itself able to meet the ever-evolving needs of Soldiers and Marines. BAE Systems developed the Low Signature Armored Cab in 2003 to provide crews in Iraq with increased protection from enemy fire. More recently, BAE Systems designed and assembled the Caiman MRAP, providing in record time advanced protection for our deployed forces. The more adaptable Long Term Armor Strategy (LTAS) cab, currently in production, was developed over a three year period in cooperation with the Army. LTAS allows crews to vary their protection level by adding or removing armor to the cab. #
• The U.S. is buying 38 M777 Howitzer guns for the Marines and Army while Canada is acquiring 25 more through the U.S. Foreign Military Sales program to add to the 12 it already has in service. BAE Systems has received orders worth around $118 million for 63 more M777 howitzers, taking the order total to exactly 800 guns. The weight of M777 is less than 4200kg, this is the world’s first artillery weapon to make widespread use of titanium and aluminum alloys, a half the weight of conventional 155mm systems. M777s are widely used in Afghanistan, providing fire support to coalition forces for weapon's ability to be airlifted to remote positions by helicopter. Low howitzer weight gives the system enormous operational flexibility and makes it ideal for a challenging environment like Afghanistan. The M777 fires the "smart" Excalibur round, co-developed by Global Combat Systems up to 40 km (25m) accurately enough to target individual rooms within a building, reducing the chance of innocent casualties and allowing supporting fire to be brought down much closer to friendly troops. #