WASHINGTON (Reuters) – A transatlantic venture led by Lockheed Martin Corp. (LMT.N: Quote, Profile, Research) on Tuesday won a $3 billion contract to design and develop the Medium Extended Air Defense System (MEADS), which is slated to replace Patriot missiles in the next decade, the venture said on Tuesday.
Officials at MEADS International — a venture which also includes MBDA Italia, the French-German aerospace company EADS (EAD.PA: Quote, Profile, Research) and Germany’s LFK-Lenkflugkorpersysteme, an affiliate of EADS and MBDA — signed the letter contract in Huntsville, Alabama on Tuesday.
The award comes after successful system demonstrations and the signing of a memorandum of understanding between the United States and Italy to fund the next phase of the missile system.
Acting Pentagon acquisitions chief Michael Wynne signed the memorandum last Friday, and Italy signed it on Monday, MEADS International President Jim Cravens said in a teleconference.
Germany is expected to sign the agreement following approval by its parliament later this year or early next, MEADS officials said on the call.
The contract was awarded by NAMEADSMA, a charter organization of NATO.
“This contract commits the partner nations to a significant new generation of air and missile defense that will cost far less to own and maintain,” Craven said.
The Pentagon last month approved the start of the development phase of MEADS, with a goal of fielding a first fully equipped battery of MEADS by 2015.
MEADS would protect against threats from tactical ballistic missiles, cruise missiles, unmanned aerial vehicles, aircraft and weapons of mass destruction.
The air defense system would incorporate the Patriot Advanced Capability-3 missile, surveillance and fire control sensors and battle management tools as well as communication centers and high-firepower launchers.
It would be easier to transport than the Patriot and should cost about half as much, according to officials at Lockheed.
Lockheed and its partners are developing the MEADS system to replace Patriot missile systems in the United States and Germany and Nike Hercules missiles in Italy.
The United States, Germany and Italy are funding MEADS in shares of 55 percent, 28 percent and 17 percent, respectively.
http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=6357185
By: Jai - 1st October 2004 at 14:09
Important milestones reached in MEADS programme
– USA and Italy sign MoU for the launch of the design and development phase of the future air defence system
– NATO agency NAMEADSMA awards letter contract to MEADS International industrial consortium
– Parliamentary decision on German participation in the MEADS development project planned for December 2004
Munich, 29 September 2004 – The MEADS International industrial consortium received a letter contract for the launch of design and development for a future air defence system from the NATO agency NAMEADSMA on 28 September 2004. EADS/LFK-Lenkflugkörpersysteme GmbH holds a share in MEADS International along with MBDA Italy and Lockheed Martin. The signing of the design and development Memorandum of Understanding (MoU) by the USA on 24 September and Italy on 27 September forms the basis for the contract that has now been concluded. For the future ground-based Medium Extended Air Defense System MEADS two important milestones have therefore now been reached.
The total volume of the letter contract awarded to MEADS International is US $ 54.5 million plus E 54.8 million and the period covered is 6 months. The overall volume of this development project, which is due to run until 2012, will amount to US $ 2 billion plus E 1.4 billion.
The overall contract will be awarded once the German Bundestag has approved German participation. The matter is expected to be dealt with by the German parliament before the end of this year.
A three-year RRE (Risk Reduction Effort) phase preceded the award of the letter contract. This was completed to the entire satisfaction of the three nations involved with a successful system demonstration on 06 May 2004. During the trilateral RRE phase, system tasks were carried out and key technologies for MEADS were investigated so as to reduce the risks for the design and development phase. In addition, it was possible to demonstrate the feasibility of using the PAC 3 missile as a MEADS missile.
EADS Defence and Security Systems Division participates in the MEADS programme with several Business Units under the leadership of EADS/LFK*Lenkflugkörpersysteme as well as with its subsidiary MBDA.
“We are proud to be partners in a highly successful transatlantic joint venture and are looking forward to continuing the cooperation. The letter contract allows us to now commence with the MEADS design and development work without any major delays or interruptions and ensures utilisation of our unique capacities in Germany. We especially welcome that we are able to participate in this international grouping without restriction, even though we are still waiting for the parliamentary decisions on Germany’s participation in MEADS. We hope that the relevant decisions will be taken before the end of 2004,” said Tom Enders, Member of the EADS Executive Committee and Head of the Defence and Security Systems Division.
MEADS protects own and allied forces in out-of-area operations, the civilian population in crisis regions and important sites in the context of Homeland and NATO territory defence. The MEADS ground-based air defence system covers the entire threat suite from air breathers up to tactical ballistic missiles with a range of 1000 km carrying biological and chemical warheads (for which “hit-to-kill” technology is required).
Only MEADS meets the specifications of the “International Common Operational Requirements” (ICOR) and the associated specifications of the “International Technical Requirements Document” (ITRD), which Germany has agreed upon together with Italy and the USA and to which these countries have trilateral commited. Moreover, only MEADS meets the requirements of the German Luftwaffe for a new generation air defence system (LVSysNG).
Equipped with a 360 degree surveillance radar, a fire control radar, a state*of-the-art tactical operations centre, “hit-to-kill” missiles (PAC 3) and its network centric hardware and software structure (netted-distributed) the system configuration can be adopted to any specific threat (flexibility/modularity). The system is cost*-effective, is designed to roll-on/roll-off C130 and A400M transport aircraft (a quantum leap in terms of mobility over systems such as Patriot) and can also integrate other sensors and effectors due to its “plug-and-fight” capability (open, networked system architecture). The trinational approach ensures interoperability in international alliances. The sensors can detect low flying targets and TBMs and offer 360 degree coverage.
The MEADS tasks are performed on the basis of an equal partnership. The financial share of the program is USA 55%, Germany 28% and Italy 17%. The technical work share of the companies involved – EADS/LFK (Germany), MBDA-IT (Italy) and Lockheed Martin (USA) – is in line with the percentages of the respective contributions to the costs. The European companies control their activities through the joint venture company euroMeads GmbH which, like Lockheed Martin, has a 50 percent share in MEADS International Inc.
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October 1, 2004 at 1:42 pm