Industry News

EDS Wins Majority of GM IT Spend Awarded

Representatives of EDS confirmed it has won the majority share of the five-year, multibillion-dollar General Motors (GM) systems integration services awards that were announced this week. Highlights are as follows:

• EDS won approximately 70 percent of the contracts it pursued, worth US$3.8 billion over five years.
• With this agreement, plus other business that was not part of the recompete, EDS now expects $1.2 billion to $1.4 billion in annualized revenue from GM over the next five years.

Begun in 2004, the GM recompete was the largest commercial contract bidding process in information technology (IT) industry history. GM launched the process to create a “third-generation” IT outsourcing model in anticipation of the end of EDS' 10-year master services agreement (MSA), which expires June 2006.

EDS' new agreement includes mission-critical systems in Global Product Development, Global Manufacturing, Global Purchasing and Supply Chain, Global Business Services, Mainframe Operations, Server Operations, GM OnLine (desktops), local area networks, GMAC and OnStar.

EDS has been the primary provider of data processing and other IT services to GM since 1984, when it was acquired by GM. Since EDS was split off from GM in 1996, it has operated under the 10-year MSA.

The results of this win are consistent with the assumptions reflected in the 2006 guidance EDS provided on its third-quarter earnings call.

[ FYI Index ]

Raytheon Receives $60 Million Saudi Arabia Award to Provide Patriot, Hawk Support

Raytheon Company has been awarded a US$60 million one-year extension to a direct sale contract from the Kingdom of Saudi Arabia to provide technical, training and logistics support for the Kingdom's Patriot and Hawk air defense systems.

Patriot is a combat-proven air and missile defense system capable of simultaneously engaging and destroying aircraft, cruise missiles, unmanned aerial vehicles and tactical ballistic missiles. The Hawk system provides robust, low-to-medium altitude air defense against air breathing threats and, when integrated with Patriot, lower-tier defense against tactical ballistic missiles.

[ FYI Index ]

Bath Iron Works Awarded $31 Million Contract for Destroyer Maintenance, Repair and Upgrades

The U.S. Navy has awarded Bath Iron Works, a subsidiary of General Dynamics, a US$30.9 million modification to a previously awarded contract to perform Post Shakedown Availability (PSA) maintenance, repair and upgrade work for two Arleigh Burke-class Aegis destroyers homeported in Norfolk, Va.  The existing contract was originally awarded in March 2005.

Work will be performed on USS Bainbridge (DDG 96) and USS Forrest Sherman (DDG 98) by the Bath Iron Works-BAE PSA Team at the facilities of BAE Systems Norfolk Ship Repair in Virginia. Work on DDG 96 will commence in May and is expected to be completed in August 2006. The PSA for DDG 98 will begin in August and will complete in November 2006.  Work will include engineering and management services; labor and procurement of material for system upgrades and correction of government-responsible deficiencies; performance of specified PSA work items, including tests and post-repair sea trials; and additional tasking to complete emergent repairs.

The team has previously performed two PSAs for Arleigh Burke-class destroyers homeported in Norfolk and three other PSAs for destroyers homeported in Pearl Harbor, Hawaii, and Everett, Wash.

Bath Iron Works ( Bath, Maine), a leader in surface combatant design and construction, employs approximately 5,600 people.

[ FYI Index ]

Air China Selects Connexion In-Flight Internet Service Provider

Representatives Air China, the leading international air carrier in the People's Republic of China (PRC), and Connexion by Boeing, a business unit of The Boeing Company, announced Wednesday they have reached a preliminary agreement to provide real-time, high-speed connectivity to air travelers traveling to and from China. The announcement in Beijing includes as many as 15 firm and optional retrofit installations on Air China's Boeing 747-400 aircraft, and other long-haul aircraft models to be determined at a later date. Financial terms were not disclosed.

Aircraft installations are expected to begin in October 2006 and once completed, the Connexion by Boeing service will provide Air China passengers with in-flight access to the Internet, real-time email, instant messaging (IM), corporate intranet access, including virtual private network capability, and the ability to stay in touch with friends, family and colleagues while enroute to their destination. Additionally, the initial aircraft installations will be completed in time for passengers to use the service in advance of the 2008 Olympics in Beijing. Service availability is expected on key routes between China and North America, Europe, the Middle East and throughout the Asia Pacific region.

In recent months, China has demonstrated significant momentum in its aviation market as airlines in the China market continue to update their fleet of aircraft to support travel on key international routes. Strong growth in the commercial airline sector is anticipated over the next several decades with new airliners needed to meet the anticipated boon in air travel.

[ FYI Index ]

IBM Unveils Revolutionary Cell Broadband Engine Computer

At a press conference in New York Wednesday, IBM introduced a blade computing system based on the Cell Broadband Engine (Cell BE). The IBM branded Cell BE-based system is designed for businesses that need the dense computing power and unique capabilities of the Cell BE processor to tackle tasks involving graphic-intensive, numeric applications.

Based on the Power Architecture, the Cell BE processor was developed in collaboration with IBM, Sony Corporation, Sony Computer Entertainment Inc. (Sony and Sony Computer Entertainment collectively referred to as Sony Group), and Toshiba Corporation. The Cell BE processor is an advanced Power Architecture-based microprocessor optimized for compute-intensive workloads and broadband media applications targeted for computer entertainment, movies and other forms of digital content.

The Cell BE-based system was previewed today at IBM's launch of new BladeCenter products in New York City. The system will rely on the Cell BE processor to accelerate key algorithms like 3D rendering, compression, and encryption, to help companies create and run highly visual, immersive, real-time applications.

Cell BE's breakthrough multi-core architecture and ultra high-speed communications capabilities deliver vastly improved, real-time response for entertainment and rich media applications. Effectively delivering 'supercomputer-like performance' by incorporating advanced multi-processing technologies used in IBM's sophisticated servers, Cell BE is especially suitable for high performance workloads across a number of industries including digital media, medical imaging, aerospace, defense and communications.

The combination of IBM's BladeCenter system with the Cell BE processor is an example of IBM's continuing collaboration with clients to help them create breakthrough solutions using IBM technology and expertise. IBM recently announced it is collaborating with Mercury Computer Systems to enable them to build Cell BE-based solutions targeted at multiple industries, IBM will also continue to work with the broader community through Blade.org, Power.org and open standards to bring additional Cell BE-based solutions to market.

IBM intends to make the Cell BE-based system available for direct purchase beginning in the third quarter of 2006, with availability via special bids now.

[ FYI Index ]

Ericsson and Hutchison Telecom Hong Kong Sign Contract

Ericsson and Hutchison Telecommunications ( Hong Kong) Limited ("Hutchison Telecom Hong Kong") have entered into a managed services agreement. Under the agreement, Ericsson is responsible for the management of telecom applications development and most of the back-end business support systems for Hutchison Telecom Hong Kong.

This is the first managed services agreement Ericsson ever signed in Greater China. The new alliance demonstrates our commitment in the region and also optimizes our organizational structure to support continual growth in the managed services area in Hong Kong and Mainland China.

This Ericsson's fifth managed services contract with the Hutchison Whampoa Group, adding Hong Kong to the successful joint operations in Australia, Italy, Scandinavia and UK.

[ FYI Index ]

Lockheed Martin Names Don Degryse VP of Navigation Systems

Lockheed Martin has selected Dr. Donald G. (Don) DeGryse, an executive with 24 years of experience in government and commercial programs, as vice president, Navigation Systems for Space Systems Company. 

In his new role, DeGryse will lead the overall strategic development and implementation of the company's pursuit of the next-generation Global Positioning System, known as GPS III.  A major focus area for Lockheed Martin, GPS III will enhance space-based navigation and performance and set a new world standard for positioning and timing services.  The new program will address the challenging military transformational and civil needs across the globe, including advanced anti-jam capabilities, improved system security and accuracy, and reliability. 

In addition to managing the GPS III campaign, he will be responsible for the execution of Lockheed Martin's operational GPS programs, including GPS IIR and IIR-M.  There are currently 13 fully operational Block IIR satellites within the overall 28-spacecraft constellation, including the first modernized IIR satellite recently declared fully operational for GPS users around the globe.  The Navigation Systems organization is within the Military Space Programs line of business.

DeGryse joined Lockheed Martin in 1982.  He most recently served as vice president, Space Radar program where he successfully led the company's effort to win a multi-million dollar contract for the concept development phase of the program.  Other key assignments include serving as vice president of Defense Systems, vice president of Flight Systems and vice president of Business Development.

He has a Ph. D. degree in mathematics from Colorado State University and held positions as assistant professor at Bowling Green State University and Gonzaga University.  He is also a graduate of the Harvard Business School Program of Management Development.

[ FYI Index ]

Rockwell Collins to Acquire Simulation Business

Rockwell Collins, Inc., a global leader in aviation electronics and communications, has entered into a definitive agreement to acquire the simulation assets of Evans & Sutherland, a leading provider of visual simulation solutions for military and commercial customers.

The transaction is subject to customary closing conditions, including regulatory and Evans & Sutherland shareholder approval, and is expected to close during the third quarter of Rockwell Collins' 2006 fiscal year (second calendar quarter).  Pursuant to the terms of the agreement, Rockwell Collins will acquire Evans & Sutherland's military and commercial simulation assets and certain liabilities, including simulation facilities in Salt Lake City, Orlando and the United Kingdom, in a $71.5 million cash transaction.  As part of this transaction, Rockwell Collins will have exclusive rights to the Evans & Sutherland laser projector for simulation.  Approximately 200 Evans & Sutherland employees will join Rockwell Collins.  Evans & Sutherland will retain ownership of its planetarium and other laser projector market offerings and will continue to maintain its headquarters in Salt Lake City.  The acquisition will not materially affect Rockwell Collins' earnings for the fiscal year ending September 30, 2006.

Evans & Sutherland produces professional hardware and software to create highly realistic visual images for simulation, training, engineering, and other applications throughout the world. Evans & Sutherland visual systems are used in both military and commercial systems, as well as planetariums and interactive theaters. Evans & Sutherland provides visualization solutions for military mission rehearsal and command training, homeland security applications, advanced engineering design applications, and domed theaters. Headquartered in Salt Lake City, Utah, the company employs approximately 275 professionals worldwide.