_Aerospace Daily

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Litton Integrated Systems Corporation, Woodland Hills, Calif., is being awarded a $138,624,300 firm-fixed-price contract for design and manufacture of Engineering Control System Equipment and Integrated Bridge Systems (IBSs) for backfit on the CG 47 class of AEGIS cruisers. The contract includes a firm requirement for four systems, options for twenty-two additional systems, and pricing agreements for IBSs for the DDG 51 class of destroyers. Work will be performed in Northridge, Calif. (50%), San Diego, Calif. (20%), Norfolk, Va. (20%), and Pascagoula, Miss.

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The Pentagon's Ballistic Missile Defense Organization is slated to receive an updated national intelligence estimate (NIE), a key factor in determining if and when to deploy a national missile defense (NMD) system. Brig. Gen. Joseph Cosumano said he expects the NIE to be provided by the intelligence agencies "shortly."

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German regional carrier Augsburg Airways has placed a firm order for six Bombardier aircraft - four 50-seat Series 300 Dash 8Qs and two 37-seat Series 200 Dash 8Qs. It has also taken options on seven additional Dash 8Qs. The contract for the six aircraft is worth Cdn $112.2 million ($78 million.)

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The U.S. Air Force used a B-2 bomber to complete the first operational test of the BLU-109 variant of the Joint Direct Attack Munition. Four of the weapons were dropped in the April 28 test at the White Sands Missile Range using a Block 30 B-2. Three targets were engaged and two bombs were dropped on one target. The AF said yesterday that two BLU-109s aimed at the same target hit the same spot less than one second apart. This improved the penetration capability of the bomb, an AF spokesman said.

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Northrop Grumman Corporation, Bethpage, N.Y., is being awarded a $248,000,000 advanced acquisition contract for long lead items for one FY 98 E-2C aircraft and three FY 99 E-2C aircraft. Work will be performed in St. Augustine, Fla. (75%), Bethpage, N.Y. (24%), and Milledgeville, Ga. (1%), and is expected to be completed in May 2002. Contract funds will not expire at the end of the fiscal year. This contract was not competitively procured. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-97-C-0147).

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The U.S. Defense Dept. and Intelligence Community (IC) need to improve their coordination of imagery collection and planning initiatives, according to the House Intelligence Committee. "Better planning of visible and multi-spectral imagery, synthetic aperture radar (SAR), moving target indicator (MTI) radar and video collection could improve support to military operations and save resources," the Intelligence Committee says in the report accompanying its fiscal year 1999 authorization bill.

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Kellstrom Industries Inc., Sunrise, Fla., signed a definitive agreement to acquire Aerocar Aviation Corp. and Aerocar Parts Inc., Florida-based companies that sell and lease aircraft, engines and engine parts, Kellstrom announced yesterday. Kellstrom will pay about $44 million in cash, along with a warrant to buy 250,000 shares of Kellstrom common stock, exercisable at the closing price on the day the transaction is completed, plus an additional $5 million payable within a two-year period after closing.

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The final five satellites in the Iridium constellation were launched by a Boeing Delta II rocket from Vandenberg AFB, Calif., on Sunday. The 15th launch in 12 months marks the quickest deployment of the largest number of satellites in history, according to Iridium LLC.

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After five days of occasionally intense debate, delegates to an International Civil Aviation Organization conference here decided that further study is required for two controversial proposals, one to create a world aviation fund to pay for modernization of air traffic management systems and another to establish a convention to regulate global navigation satellite systems. The proposals were advanced by developing countries seeking easy

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COMPUTER PROGRESS: Although astronauts on the International Space Station will use Pentium-equipped laptops to interface Station systems, the systems themselves will be based on a 386 architecture because the industry has moved so much faster than the Station developers. Similarly, when NASA wanted to create a virtual reality training environment for Station spacewalkers, it bought the hardware it needed off the shelf. "The computer industry has blown past the space program," says David J. Homan, manager of the VR Lab at Johnson Space Center.

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Rostelecom, Russia's long-distance telecommunications operator, has become the first customer for Lockheed Martin Intersputnik (LMI), agreeing to use 25 transponders on the LMI-1 satellite planned for launch in December 1998. LMI announced the deal, but didn't disclose its terms.

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Aerospace/Defense Stock Box As of closing May 15, 1998 Closing Change UNITED STATES DowJones 9096.00 -76.23 NASDAQ 1846.77 -18.59 S&P500 1108.73 -8.64 AARCorp 29.000 +.062 AlldSig 43.125 -.562 AllTech 64.625 -.438

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ORBITAL SCIENCES CORP., Dulles, Va., said the U.S. Navy exercised a $6 million contract option with the company's Fairchild Defense division to make a new version of its AN/ASQ-215 Digital Data Set (DDS) that will accept PCMCIA mass memory cards. The idea was presented as part of a Value Engineering Change Proposal (VECP). Orbital said the VECP will reduce the government's cost for the redesigned DDS by almost 20%.

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INTERSTATE ELECTRONICS CORP., Anaheim, Calif., won a contract from Raytheon for the XM982 Extended Range Projectile Program. Interstate will deliver 393 engineering development model GPS receivers. Terms of the contract were not disclosed.

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Parker Aerospace, an operating unit of Parker Hannifin Corp., said it formed a Servo Controls Div. in Dublin, Ga. The unit will design and make electrohydraulic servovalves, control actuation systems and electronic components for the aerospace and power- generation markets. Servo Controls will be housed in a 78,000-square-foot facility that was formerly part of Parker's Abex NWL Div. Joel Benkie, former plant manager, will be there division's general manager.

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CACI INTERNATIONAL INC., Arlington, Va., won a $48 million, five-year contract from the U.S. Space and Naval Warfare Systems Center (SPAWAR), Chesapeake, Va., to provide software implementations, training and troubleshooting for the new Naval Tactical Command Support System (NTCSS) program. CACI takes over as prime contractor after seven years of support as a subcontractor.

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GBI IS NO THAAD: National Missile Defense officials are anxious to distinguish between their program and the Theater High Altitude Area Defense (THAAD) program, which has failed five times in a row to intercept a target. Both rely on hit-to-kill technology, which isn't in question. But, says NMD Joint Program Office Director Brig. Gen. Joseph Cosumano, "There are tremendous differences in the challenges THAAD faces and those I face." He notes that THAAD and NMD's Ground Based Interceptor operate at different ranges, with THAAD trying for very difficult short-range hits.

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Huck International, a subsidiary of Cordant Technologies Inc., Ogden, Utah, agreed to buy all the outstanding shares of Jacobson Mfg. Co. Inc. for $270 million, Cordant announced Thursday. Jacobson makes custom-designed metal parts and fasteners and plastic products and has projected 1998 revenues of about $145 million. Cordant will finance the acquisition with existing bank lines of credit. Closing is expected before the end of the quarter.

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POT OF GOLD: Human tissue factories in space apparently aren't going to attract the sort of private investment in low-Earth orbit NASA hopes will free it to explore the solar system and beyond. Although using the microgravity environment to grow cartilage and other tissues for implant into patients on Earth is frequently cited as a potential source of revenue in LEO, work by the Harvard-M.I.T. Division of Health Sciences has cast a cloud on those hopes.

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Boeing on Friday rolled out the first AH-64D Apache multi-mission combat helicopter for the Royal Netherlands Air Force in a ceremony at the company's Mesa, Ariz., facility. The RNAF is the first international customer to take delivery of an AH-64D. Boeing said it will make 30 Apaches for the RNAF. The U.K. will become the second international customer later this year.

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AEROMET CORP., Eden Prairie, Minn., was awarded the first year of a planned two-year evaluation contract by Boeing's Phantom Works. Aeromet will try to prove the feasibility of fabricating titanium aircraft structural components using its Lasform laser-based rapid fabrication technology. Successful completion of the feasibility phase could lead to a production contract for certain military airframe components by 2001.

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The U.S. Navy has decided to prolong the Fast Hawk hypersonic missile advanced technology demonstration by one year to deal with technical hurdles encountered early in the program, according to Rear Adm. Daniel Murphy, director of surface warfare.

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The U.S. Air Force has failed to make the case that the Airborne Laser program justifies an investment of $6.3 billion, "especially with a number of other theater missile defense systems competing for limited TMD resources," the Senate Armed Services Committee said in its fiscal 1999 defense authorization report, released yesterday.

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The U.S. Air Force would rather upgrade the Senior Scout palletized intelligence gathering sensor suite carried by aging C-130s than spend money to integrate it on a reconnaissance version of Lockheed Martin's new C-130J, according to Brig. Gen. David A. Nagy, director for AF information dominance programs. A new architecture from the Pentagon's Defense Airborne Reconnaissance Office recommends replacing the aging Air National Guard C-130s that carry Senior Scout and Pacer Coin, another intelligence system.

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CUBIC DEFENSE SYSTEMS INC., San Diego, won a $31.6 million contract from the U.S. Army to transition the Multiple Integrated Laser Engagement System (MILES 2000) into full-rate production. The total value of the contract could exceed $130 million with significant follow-on production potential, Cubic said. If all options are exercised, Cubic will make 200,000 units of various equipment that comprise the training system.