BAE says it won a $450M Navy contract

LONDON --British aerospace company BAE Systems PLC said Tuesday it won orders with the U.S. government worth at least US$669 million (euro531.1 million).

The company received a US$450 million (euro357.2 million) contract with the U.S. Naval Air Systems Command to reengineer and remanufacture obsolete aircraft parts for the Navy and other U.S. agencies.

The company also won a contract worth at least US$132 million (euro104.8 million) with the U.S. Army to provide engineering and analysis operations for the Army Space and Missile Defense Future Warfare Center and a deal worth at least US$87 million (euro69 million) agreement with the Navy.

Work on the Naval Air Systems Command contract will begin immediately and will be performed by members of the BAE Systems-led team throughout the world, the London-based company said in a statement. BAE didn't say how long the contract is for.

Aging aircraft can be a challenge to maintain because often the original manufacturers for the parts no longer exist.

"The technical depth and breadth of our corporation and our teammates offer the Navy solutions that are low risk, affordable, and sensitive to the demanding schedules required," said Doug Belair, president of BAE Systems Technology Solutions & Services.

The other naval contract covers maintenance of the Navy's cruisers, destroyers and frigates at Pearl Harbor, Hawaii. It includes an initial base year plus six option years, and its total value could reach US$270 million (euro214.3 million).

The army contract covers the provision of engineering, analysis and maintenance operations for the Army's space and missile program. The total cumulative value of the 10-year contract could reach US$482 million (euro382.6 million) if all options are exercised.

BAE Systems, with more than 100,000 employees worldwide, posted sales of more than US$28 billion (euro22.2 billion) in 2005.