The Insider

BAE Systems has been awarded a $10.8 million foreign military sales contract to provide two Assault Amphibious Vehicles for Japan.

The firm-fixed-price contract will allow BAE to provide the material and technical engineering to build, integrate, test and deliver one AAV command variant and one AAV recovery variant, according to a June 22 contract announcement.

If all options in the contract are exercised, the value will increase to $11 million. All of the work will be performed at an Anniston, AL, facility and completed by June 2019.

"We are proud to provide continued support to the Japanese Ministry of Defense through this latest Assault Amphibious Vehicle (AAV) acquisition. As the original equipment manufacturer of the AAV fleet, we have a strong history of supporting this platform and have already begun work on building new vehicles for the Japanese military," BAE Systems spokeswoman Megan Mitchell wrote in a June 24 statement to Inside Defense. "These key vehicles will provide specialized support within the fleet and supports the ongoing development of amphibious capability within the Japanese Ground Self Defense Force."

Inside Defense reported in April that BAE Systems was awarded a direct commercial sale contract to produce 30 new Assault Amphibious Vehicles for Japan, which supports the country's goal of establishing an Amphibious Rapid Deployment Brigade by 2018.

The new brigade will be equipped with AAVs and MV-22 Ospreys. BAE has worked on this contract for the last three to four years.

"We're proud to support the Japanese military's recapitalization by providing this enhanced amphibious capability," Dean Medland, vice president of programs at BAE Systems' Combat Vehicles unit said in an April statement. "As the original equipment manufacturer of the AAV fleet, we have a strong history of supporting this platform."

BAE Systems will provide 30 new AAV7A1 Reliability, Availability, and Maintainability/Rebuild to Standard (RAM/RS) vehicles, plus supply tools and test equipment to support maintenance. The company will also provide training aids for the vehicles to the Japanese military, according to the statement.

The company is prepared to produce additional AAVs for Japan beyond the 30-vehicle buy, according to an April 6 statement to Inside Defense.

The AAV7A1 RAM/RS variant provides a more powerful engine and drive train, as well as an upgraded suspension system, allowing the new vehicles to meet or exceed original AAV7A1 performance. The variant also provides improved mobility, command, control and repair capabilities while transporting troops and cargo from ship to shore, the statement reads.

Work on the contract will take place at BAE Systems' facility in York, PA. Production is expected to begin in August with vehicle deliveries beginning one year later. Final delivery to Japan is expected to take place by the end of 2017.

Private-equity firm J.F. Lehman & Company said today it has added retired Army Gen. John Campbell to its operating executive board, a group of industry and government executives with experience in the firm's target industries.

J.F. Lehman is focused on the defense, aerospace and maritime sectors.

Campbell retired from the Army in May as commander of United States Forces-Afghanistan. He also served as the Army's vice chief of staff and as commanding general of the 101st Airborne Division.

Alion Science and Technology said today it has named Kevin Cook chief financial officer, effective July 5.

Cook previously was CFO at Booz Allen Hamilton, starting in 2014. He began his career at Westinghouse Defense in 1978 and joined Booz Allen in 1986.

Ten years later, he left for JAMIS Software, but rejoined Booz Allen in 2003.

Aerojet Rocketdyne said today it has reorganized, consolidating six business units into two.

The two units will be Space and Defense, and the senior vice presidents of the organizations will be named at a later date, the company said. Those executives will report directly to Eileen Drake, the company's chief executive, but, in the interim, the space organization will report to Drake and the defense organization to Mark Tucker, the company's chief operating officer.

As part of the reorganization, the new defense unit will be headquartered in Huntsville, AL, along with Aerojet Rocketdyne's defense advanced programs, known as the Rocket Shop. The space business unit will continue to have multiple sites throughout the country, the company said.

Additionally, Aerojet Rocketdyne's board of directors named Warren Lichtenstein, who has served as chairman of the board since 2013, executive chairman of the company.

Aerojet Rocketdyne said the consolidation will result in annual cost savings of about $8 million. The company said it has already realized cost savings of $100 million related to integrating Pratt & Whitney Rocketdyne, which it bought in 2013. Additionally, its competitive improvement program, which it began in March of last year, is set to save about $145 million annually, starting in fiscal year 2019, Aerojet Rocketdyne added.

Some must-reads from this week's edition of Inside the Army:

1. At a time when Defense Secretary Ash Carter is courting Silicon Valley and others outside the department's traditional orbit, one Army program executive officer outlined some challenges with integrating innovative technologies.

Full story: Army PEO highlights barriers to innovation

2. The Army's pursuit of readiness takes many forms, including an ongoing push for network modernization, according to its chief information officer.

Full story: Army CIO touts benefits of network modernization

3. The Army has asked the Office of the Secretary of Defense for permission to proceed with its signature overhaul of aviation platforms, according to the program manager for the Improved Turbine Engine Program and Future Vertical Lift.

Full story: Army targets MDD on Future Vertical Lift

4. Majority staff directors for the House and Senate Armed Services committees see plenty of room for compromise as they prepare to launch summer meetings to reconcile defense policy bills that are $18 billion apart and propose significantly different reforms to the Defense Department's acquisition system, including the elimination of DOD's acquisition chief.

Full story: Staff chief: House lawmakers open to Senate proposal to eliminate AT&L

United Technologies today issued a statement reaffirming "its commitment to doing business in the U.K. and the European Union" following a U.K. vote to exit the EU.

The company said its sales in the U.K. totaled about $2 billion in 2015.

"The process of the U.K.'s withdrawal from the EU will take time and we do not believe it will impact our businesses in the near term,"  UTC Chief Executive Officer Greg Hayes said in the statement. "UTC remains committed to our businesses and their more than 8,000 employees in the U.K."

The Marine Corps CH-53K "King Stallion" heavy-lift helicopter successfully lifted 27,000 pounds during testing last week, contractor Lockheed Martin announced.

The sling-load was lifted externally 100 feet above the ground while the aircraft performed maneuvers, according to Lockheed's June 23 statement.

The new aircraft is being developed to carry 27,000 pounds externally over 110 nautical miles. The program is expected to go to milestone C in fiscal year 2017 and reach initial operational capability in 2019.

The Marines' program of record involves procuring 200 aircraft. Germany is also considering the CH-53K for its heavy-lift replacement program, as Berlin recently sent the U.S. government a request for pricing on 41 helicopters, Inside the Navy reported in May (178339)