_Aerospace Daily

Staff
General Dynamics' Bath Iron Works, Litton Industries' Ingalls Shipbuilding and Lockheed Martin Government Electronic Systems have formed a team to compete for the U.S. Navy's new DD21 surface combatant ship program, which carries a potential value of more than $20 billion. Several other teams also are expected to compete for the program, which involves development, design, construction and life-cycle support of next-generation destroyers and cruisers. More than 30 of the ships could be built during the first 15 years of the next century.

Staff
The National Defense Panel has called on the Pentagon to create a $5 billion to $10 billion annual "investment wedge" to transform the military for the kinds of operations that will be required around 2010 to 2020, but Deputy Defense Secretary John Hamre isn't sure where the money will come from. "I don't know exactly how we go about creating the funds," Hamre told reporters yesterday following a speech to the National Contract Management Association in Washington. He said the NDP "didn't really indicate" the source of the funds.

Staff
LOCKHEED MARTIN has completed a test of an extended-range Army Tactical Missile System (ATACMS), known as the Block 1A. It was the 12th in a series of tests at White Sands Missile Range. The missile carried a live warhead of anti-personnel mines. Full rate production is expected to begin this fiscal year.

Staff
General Atomics has demonstrated at-sea control of a Gnat 750 unmanned aerial vehicle with a Tactical Control Station, under development as a common system to control an array of remotely piloted aircraft. In the week-long evaluation, which involved the USS Tarawa near San Clemente Island off Southern California, the UAV flew six missions and logged a total of 50 hours, according to the company.

Staff
The Pentagon has selected four organizations to divide approximately $16 million to upgrade high performance computers. The selected organizations are the Air Force Research Laboratory at Rome, N.Y.; the Maui High Performance Computing Center, Hawaii; the Naval Research Laboratory, Washington, and the Space and Naval Warfare Systems Command, San Diego.

Staff
Thiokol Corp. has left the Alliant Techsystems team competing for the U.S. Air Force's ICBM sustainment program but remains on the TRW team, a Thiokol spokesman said yesterday. "The relationship no longer exists," the spokesman told The DAILY. On Nov. 6, Thiokol, the managing partner for propulsion in the joint venture, told Alliant in writing that Alliant was "proposing to the Air Force in a manner which was inconsistent with our joint venture agreement, and with those inconsistencies, it validated the agreement."

Staff
Sen. Strom Thurmond (R-S.C.) will give up the Senate Armed Services Committee chair at the end of next year, when he will be 96, his office announced yesterday. Thurmond will remain on the military authorization panel until his term expires in 2002. He has already said he will not seek reelection. Although he has been a member of the panel for almost 40 years, most of that in the minority. He will have served as its chairman for four years at the end of 1998.

Staff
VICOR CORP., Andover, Mass., authorized a common stock repurchase program of up to $30 million. The board of directors authorized the buy in the open market or through privately negotiated transactions. The program includes $6.5 million remaining from a prior stock buyback program.

Staff
The U.S. Air Force Ogden Air Logistics Center has awarded Hughes Training an $11.8 million contract for continued training and maintenance operations associated with the joint AF E-3 and Navy E-6 Flight Crew Training Systems program. This is the fifth year in a row that the Arlington, Tex., unit of Hughes Aircraft Co. will provide training services for the E-3/E-6 flight crews, Hughes said yesterday. The contract is expected to run through next September.

Staff
NASA's Lunar Prospector, a bargain-basement $20 million probe designed to pick up where Apollo left off in exploring Earth's moon, is scheduled for a Jan. 5 launch on the untried Lockheed Martin Launch Vehicle-2, now known as Athena 2.

Staff
BAI Aerosystems Inc., Easton, Md., has won a $1.1 million contract from the U.S. Marine Corps to design and produce up to 42 daylight pan-tilt-zoom cameras for the Dragon Drone unmanned aerial vehicle. BAI, which developed the UAV and its predecessor, the Exdrone, said the laser range-finder-equipped camera "is expected to significantly increase the targeting accuracy of the Dragon Drone...."

Staff
After winning places for both its auxiliary power unit and environmental control system on Raytheon Aircraft's new Hawker Horizon jet, AlliedSignal Aerospace now has a deal with the airframer to tie those products together in an integrated package, offering lighter weight, better performance and a single point of contact for Raytheon and its customers.

Staff
PRECISION STANDARD INC., Denver, won two C-130 contracts and a B727-700 contract. Subsidiary Pemco Aeroplex won a contract from Ogden Air Logistics Center, Ogden, Utah, to modify seven C-130 transport aircraft and a separate contract, in partnership with Derco Aerospace, from the South African Air Force for maintenance of two C-130s. Subsidiary Pemco World Air Services Inc. won a contract from Champion Air, Minneapolis, for the maintenance of a B727-200.

Staff
HUGHES AIRCRAFT CO., El Segundo, Calif., won a contract from Kaman Aerospace International Corp. to supply 11 mid-wavelength (MWIR) staring infrared imaging systems for the Royal Australian Navy's Super Seasprite helicopters. Terms of the contract were not disclosed. Deliveries are scheduled to begin in April 1999 and be completed in February 2000.

Staff
NATIONAL TECHNICAL SYSTEMS INC., Calabasas, Calif., signed a contract with the U.S. Air Force to take over and operate the Science and Engineering test laboratory facilities at McClellan AFB, Sacramento, and to provide the Air Force with testing services from those facilities. The contract, effective through April 1999, has a maximum potential revenue value of $10.5 million and includes a backlog of $2 million in aircraft related test and evaluation work.

Staff
Aerospace/Defense Stock Box As of closing December 4, 1997 Closing Change UNITED STATES DowJones 8050.16 + 18.15 NASDAQ 1613.42 - 1.71 S&P500 973.10 - 3.67 AARCorp 39.375 + .375 AlldSig 38.688 0.000 AllTech 58.938 - .250

Staff
UNITRODE CORP., Merrimack, N.H., authorized a plan to repurchase up to one million shares of its common stock, dependent upon the availability of shares at acceptable price levels.

Staff
CORRECTION: Sen. Dan Coats (R-Ind.) sponsored a resolution expressing the sense of Congress that Russia take "concrete actions" to stop assisting Iran's missile program, not Sen. Herb Kohl (D-Wis.), as reported in The DAILY of Nov. 13 (page 243). The Congressional Record identified Kohl as the sponsor.

Staff
Top executives from GE Aircraft Engines and Pratt&Whitney have decided to keep their Engine Alliance in place following meetings to review the collaboration last week, and in 1998 managers plan to step up marketing efforts for the proposed new 75,000 lbst.-class turbofan and firm up contractual arrangements with Airbus Industrie.

Staff
A Lockheed Martin spokesman said a press report from Israel that the company was prepared to buy Israel Aircraft Industries was "wholly unrealistic and entirely premature." The newspaper Haaretz reported yesterday that former Lockheed Martin chief Norman Augustine expressed interest in buying IAI during a meeting with Prime Minister Benjamin Netanyahu last month. But the Lockheed Martin spokesman said the "subject was never broached," and that any such move would have to wait until Israel had resolved privatization issues.

Staff
DECRANE AIRCRAFT HOLDINGS INC., El Segundo, Calif., completed its acquisition of Audio International Inc. Terms of the transaction were not disclosed.

Staff
Eyeing a total potential market of anywhere from 300 to 900 engines or upgrade kits, GE Aircraft Engines unveiled a self-funded program to flight- qualify an enhanced version of its F110 fighter engine for Lockheed Martin's F-16C/D and Boeing/McDonnell Douglas' F-15E in December 1999.

Staff
In an unusual dinner speech at a symposium here Wednesday night, Rep. Curt Weldon (R-Pa.) blasted a packed room of senior military officials and defense contractors for focusing on bottom lines and petty turf wars rather than coming together to support theater and national ballistic missile programs. Following the speech, one industry official told The DAILY that the congressman "said what a lot of us have been thinking and know is true."

Staff
Two Hughes telecommunications satellites were orbited in separate launches Tuesday evening, only 18 minutes apart in time but a hemisphere apart in distance. First up was JCSAT-5, a body-stabilized HS-601 spacecraft launched at 5:52 p.m. EST from the Guiana Space Center in Kourou aboard an Ariane 44P. It was followed by Astra 1G, also an HS-601, aboard a Russian Proton lifting off from the Baikonur Cosmodrome at 6:10 p.m. EST.

Staff
ENCORE COMPUTER CORP., Fort Lauderdale, Fla., said Raytheon bought a Digital Alpha AXP-based, five processor computer system in support of the Aegis program and a second multi-processor system to support the Patriot Missile program.