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Volume 5, Issue 16
June 3, 2005

Circulation 14, 402

Friday FYI

Newsletter from the Office of the Vice President for Research and Graduate Education - U. T. Dallas

Industry News

MEADS International Signs US$3.4 Billion Design and Development Contract

MEADS International (MI) formally signed a definitized contract to design and develop the tri-national Medium Extended Air Defense System (MEADS).  The contract value is approximately $2 billion plus €1.4 billion for the program’s design and development (D&D) phase.

The D&D contract extends the period of performance of a previous letter contract that was awarded to MI by the NATO MEADS Management Agency (NAMEADSMA) in September 2004.  Award of the contract follows the German government's approval on April 20 of entry into the MEADS D&D phase, a step taken earlier by the governments of Italy and the United States. 

MEADS International is a joint venture of MBDA Italia, EADS/LFK in Germany and Lockheed Martin in the United States.

MEADS, under development by Germany, Italy and the United States, includes a lightweight launcher, 360-degree fire control and surveillance radars and plug-and-fight battle management command and control capabilities not found in current systems.  With its enhanced mobility and advanced technologies, MEADS will offer Armed Forces significant improvements over existing systems.

MEADS is a mobile air and missile defense system designed to replace Patriot systems in the United States and Germany, and Nike Hercules systems in Italy.  It also meets the requirements of Germany’s “capabilities oriented” air and missile defense concept.  MEADS incorporates the battle-proven hit-to-kill PAC-3 missile in a system that includes 360-degree surveillance and fire control sensors, netted-distributed battle management/communication centers and high-firepower launchers.  The system combines superior battlefield protection with unprecedented flexibility, allowing it to protect maneuver forces and to provide homeland defense against tactical ballistic missiles, cruise missiles, unmanned aerial vehicles and aircraft.

During the MEADS design and development phase, MI will finalize designs for equipment and complete their integration into the 21st century air and missile defense system.  The system’s six major equipment items are: Multifunction Fire Control Radar; Surveillance Radar (MFCR); Battle Management, Command, Control, Communications, Computers and Intelligence (BMC41); Certified Missile Round (PAC-3 missile and canister); Launcher; and Reloader.

In Orlando, the MEADS program will significantly expand its technical employment as a result of the contract.  The MEADS program will expand at EADS/LFK, Lockheed Martin, MBDA and MI locations that currently participate in development of the advanced air and missile defense system.  Lockheed Martin will perform contract work at its locations in Orlando, FL; Dallas, TX; Huntsville, AL; and Syracuse, NY.  EADS/LFK will perform work on the BMC4I, launcher, Surveillance Radar and MFCR elements at plants around Munich, Germany.  MBDA’s Italian operating company, MBDA Italia, will perform work on the BMC4I, MFCR and launcher/reloader elements in Rome, Italy.  The development work will be allocated in accordance with national funding.  The United States funds approximately 58 percent of the MEADS program, and European partners Germany and Italy provide approximately 25 percent and 17 percent, respectively.

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U.S. Navy Awards $3 Billion DD(X) Ship System Integration and Detail Design Contract to Raytheon

The U.S. Navy awarded Raytheon Company a US$3 billion DD(X) Ship System Integration and Detail Design contract to continue the seamless advancement of mission equipment for the Navy's DD(X) Destroyer. Raytheon will continue to serve as the mission systems integrator for the DD(X) National Team, which includes large industry partners such as Lockheed Martin, IBM and UDLP, as well as a consortium of small businesses. Raytheon plans to issue subcontracts for work under this contract by mid-summer.

This contract reflects the Navy's firm commitment to the DD(X) program, as well as the maturity of DD(X) technologies, including the Dual Band Radar (AN/SPY-3 and Volume Search Radar), the Integrated Undersea Warfare System, the MK 57 Advanced Vertical Launcher, the Total Ship Computing Environment, and Integrated Apertures. Raytheon Integrated Defense Systems will serve as the lead Raytheon business for the program.

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Ethiopian Airlines Increases 787 Dreamliner Order by Five Airplanes

Representatives of Boeing and Ethiopian Airlines said the airline has increased its firm orders for the 787 Dreamliner to 10 airplanes by exercising purchase rights obtained with its initial order announced Feb 4. The airline is the first 787 customer to exercise purchase rights or options for the rapidly selling new Boeing jetliner.

Ethiopian Airlines and Boeing also said they have completed the contract for the airline's 10 Dreamliners, valued at US$1.6 billion at list prices.

Ethiopian Airlines moved quickly to secure its five additional delivery positions for the 787 following a series of recent order announcements for the airplane, which is essentially sold out for its first three years of production. Its first 787 is scheduled for delivery to its Addis Ababa home base in 2008.

Ethiopian Airlines will be the first Africa-based operator of the technologically advanced and rapidly selling jet and one of the first anywhere to receive the Dreamliner.

Developed as an entirely new airplane and incorporating composite technology that lends to operating efficiencies and performance characteristics exceeding conventional airframes, Boeing's 787 continues to gain ground with airlines worldwide.

Boeing now has 266 orders and commitments from 21 customers for the 787. The Ethiopian Airlines order will be booked on Boeing's Orders and Deliveries Web site pending final documentation of U.S. Ex-Im Bank guarantees.

Boeing's partnership with Ethiopian Airlines dates back some 50 years. Today, it operates an all-Boeing fleet of 737 and 767 airplanes.

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BT, Nortel to Develop UK National Defense Communications Network

BT is partnering with Nortel as its main supplier to deploy a nationwide communications network that will be used to provide secure managed voice and data services to the UK Ministry of Defence (MOD) and British Armed Forces.

The deployment is part of a five-year extension of the Defence Fixed Telecommunications Service (DFTS) contract with BT – worth up to £1.5 billion to BT – to build and manage the UK MOD’s mission critical telecommunications infrastructure.

Using Nortel multiservice switching and voice over IP (VoIP) solutions valued at US$42 million, the new network will be built out over the next two years. It is expected to provide improved security and responsiveness for the UK military and greater operational and end user efficiencies, resulting in an estimated savings of £15 million per year to the UK MOD.

The infrastructure will provide stable wide area network services in over 2,000 locations, including voice services to over 200,000 subscribers and common Ethernet-based connectivity to 150,000 terminals.

To ensure the smooth migration of current services and applications across the new multiservice network, BT and Nortel have jointly developed a dedicated testing facility for the MOD network. At a cost of over £3 million in technology alone, the Network Development Lab (NDL) is a captive replica of the MOD’s telecommunications network. Officially opened today, the lab includes all existing equipment currently deployed in the UK MOD network, along with all new equipment being procured as part of the network evolution.

BT and the Defence Communications Services Administration (DCSA), the operator of the DFTS, also plan to use the lab as an opportunity to showcase DFTS services that could be provided to third-party organizations, such as those in the defence industry or other government agencies that require an MOD-grade secure network.

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Denmark Awards Lockheed Martin US$40 Million Radar Contract

Lockheed Martin received a contract valued at approximately US$40 million from the Air Material Command (AMC) of the Royal Danish Air Force for two long-range AN/TPS-77 transportable radar systems and a four-year logistic support package.

The new radars will enhance air surveillance within Denmark and over surrounding seas. Although the radars will be stationed at fixed sites within radomes, the mobility of the AN/TPS-77 allows the systems to be quickly redeployed as needed.

The AN/TPS-77 is the latest configuration of the world’s most successful three-dimensional (3-D) solid-state radar design, the AN/FPS-117.  This L-band, tactical radar provides continuous high-quality 3-D surveillance on air targets at ranges out to 280 miles and at elevations up to 100,000 feet.  These two radars now under contract will represent the 26th and 27th AN/TPS-77 radar sets produced to date.  In addition, there are 127 AN/FPS-117 systems operational in 14 countries. Many have operated for years in remote areas, completely unmanned and in a wide range of operational environments.

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William W. George Elected to ExxonMobil Board

Representatives of Exxon Mobil Corporation announced that shareholders elected William W. George to its board of directors. Mr. George is professor of Management Practice, Harvard Business School, and former chairman of the board and chief executive officer of Medtronic, Inc.

With George's election, the ExxonMobil board stands at eleven directors, nine of whom are non-employees.

George joined Medtronic in 1989 as president and chief operating officer. He was elected chief executive officer in 1991 and served in that capacity through 2001. He was chairman of the board from 1996 to 2002, when he retired.

In 2004, George joined the faculty at Harvard Business School where he teaches Leadership and Leadership Development. He was recently named one of "The Top 25 Most Influential Business People of the Last 25 Years" by PBS Nightly News. Prior to joining the Harvard faculty, Mr. George was professor of Leadership and Governance at IMD International in Lausanne, Switzerland, and executive-in-residence at Yale University's School of Management. He was recently appointed as chairman of the Global Center for Leadership and Business Ethics.

He serves as a director of Goldman Sachs and Novartis, and on the boards of National Association of Corporate Directors and Carnegie Endowment for International Peace.

George holds a bachelor's degree in Industrial Engineering from Georgia Tech, and an MBA from Harvard University, where he was a Baker Scholar. He received the Alumni Achievement Award from Harvard Business School and the Legend in Leadership Award from Yale University.

ExxonMobil's other directors include Dr. Michael J. Boskin, T.M. Friedman professor of Economics and senior fellow, Hoover Institution, Stanford University; James R. Houghton, chairman of the board, Corning Incorporated; William R. Howell, chairman emeritus, J.C. Penney Company, Inc.; Dr. Reatha Clark King, former chairman, board of trustees, General Mills Foundation; Philip E. Lippincott, retired chairman of the board and chief executive officer, Scott Paper Company, retired chairman of the board, Campbell Soup Company; Dr. Henry A. McKinnell, Jr., chairman of the board and chief executive officer, Pfizer Inc.; Marilyn Carlson Nelson, chairman of the board and chief executive officer, Carlson Companies; Lee R. Raymond, chairman of the board and chief executive officer, Exxon Mobil Corporation; Walter V. Shipley, retired chairman of the board, The Chase Manhattan Corporation and The Chase Manhattan Bank; and Rex W. Tillerson, president, Exxon Mobil Corporation.

[ FYI Index ]

Ericsson Signs GSM Expansion Contract with Mobitel

Mobitel has selected Ericsson as the exclusive vendor to expand its GSM network in Sri Lanka. Ericsson will supply both core and radio access network equipment, including GSM 900, GPRS, EDGE, as well as turnkey network design, deployment and integration services.

This agreement complements the GSM 1800 contract that was previously awarded to Ericsson, leading to Mobitel's successful launch of mobile services in 2002, for both consumer and corporate market segments.

The current contract for deployment of GSM 900 technology, together with the existing GSM 1800, will enable Mobitel to more than double its network capacity and offer the latest and advanced features and services to its end users, thereby strengthening Mobitel's leadership in Sri Lanka.

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Kabel Deutschland Launches Digital Telephony over Cable with Cisco IP Next Generation Network Technology

Representatives of Cisco Systems announced that Kabel Deutschland (KDG), Europe's largest cable operator, has implemented Cisco Internet Protocol Next-Generation Network (IP NGN) solution to deliver converged voice, video and data, or "Triple Play", services over its cable broadband network serving the city of Leipzig.

The new converged IP NGN infrastructure is supporting the launch of KDG's "Kabel Phone" service, giving customers access to digital telephony services in addition to television, radio and Internet services over the same cable broadband connection. KDG customers participating in the Leipzig pilot project has been able to make digital telephone calls over a cable connection instead of the normal telephone connection since April 1 this year. The KDG "Kabel Phone" service is scheduled to be available in up to fifteen more cities, including Hamburg, Berlin, Munich, Dresden and Koblenz, by the fourth quarter this year.

The overall system provides seamless integration of IP-based and PSTN telephone networks and is scalable to serve millions of subscribers.