_Aerospace Daily

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Raytheon Co. beat out French and Israeli competitors to supply its Rolling Airframe Missile for the new Republic of Korea Navy destroyer, the KDX-II. The Mk. 31 Mod 1 RAM will be installed on the KDX-II destroyer, constituting the middle, defensive layer against anti-ship missiles, Raytheon said. Beginning in 2001, the company will deliver 21-round launcher systems as well as provide support services. The Block 1 variant recently received approval for full rate production, after completing U.S. Navy testing. A separate contract will cover procurement.

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Rockwell Collins and BFGoodrich Aerospace said they have formed an alliance to provide airlines a broad range of equipment, parts and maintenance services including single-stop solutions for avionics, instrumentation and other aircraft components.

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NASA'S SPACE SHUTTLE Endeavour landed safely at Kennedy Space Center, Fla., Tuesday evening after a one-orbit wave-off because of high crosswinds at the KSC landing strip. Space agency managers had been prepared to send Endeavour to a backup landing at Edwards AFB, Calif., but conditions improved enough for the 6:22 p.m. EST landing in Florida. The six-member crew of the STS-99 mission spent more than nine days mapping all but 80,000 square miles of the dry land between 60 degrees North latitude and 57 degrees South (DAILY, Feb. 23).

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Boeing and its striking engineers and technical workers are slated to meet with a federal mediator today, 15 days into a walkout that appears to be having an impact on the company's operations.

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The U.S. Navy reported completion of the eighth in a series of tests of the Aegis Weapon System's newest distributed combat systems capability. The test, which took place Feb. 11-15 in the Virginia Capes Operating Area, integrated the AWS Cooperative Engagement Capability (CEC) with the Advanced Combat Direction System (ACPS) and Command and Control Processor (C2P).

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EDO Corp. reported fourth quarter earnings per share of $0.21 versus $0.44 in 1998, on sales of $27.441 million compared to $23.533 million in 1998, up 17% year-over-year.

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International Space Station managers at NASA allowed Station prime contractor Boeing to collect unearned incentive fees totaling $16 million last year after failing to act on evidence the company's estimates of cost overruns on the huge project were too low, according to a new report by NASA's Inspector General. The fees were paid even though the Station program office had "a fundamentally sound process for assessing contractor performance," and top NASA managers had been told Boeing's estimates of overruns on the Station project were too low.

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The Teal Group, Fairfax, Va., predicts that 2,932 combat aircraft worth $136.1 billion (in today's dollars) will be built over the next decade. The prediction includes all combat aircraft with a takeoff weight of more than 20,000 pounds. All the planes covered are supersonic, except the Italo-Brazilian AMX and the Anglo-American Harrier. Russian aircraft are included but Chinese ones are not.

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Lockheed Martin Space Systems will receive $300 million in financing for Atlas 5 launch facilities in Florida under a deal facilitated by the state's Spaceport Florida Authority. Under the conduit structured financial lease deal, the Lockheed Martin unit will receive certain tax advantages on the Bank of America loan, which it will use to develop infrastructure for the new Atlas is building under the Pentagon's Evolved Expendable Launch Vehicle (EELV) program, according to a spokesman for the state authority.

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EchoStar Communications Corp. has ordered three new communications satellites -- one from Lockheed Martin Commercial Space Systems and two from Space Systems/Loral -- to expand its direct broadcast and other services in the U.S. The Littleton, Colo.-based company said yesterday it has ordered a Lockheed Martin A2100 AX spacecraft optimized for direct broadcast applications as its EchoStar VII, which will be positioned at 119 degrees West longitude.

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Cubic Defense Systems Inc., San Diego, Calif., is being awarded a $23,996,925 modification to previously awarded contract N61339-95-C-0033 to exercise an option for the Lot V production of the Multiple Integrated Laser Engagement System (MILES) 2000 Tactical Engagement Simulation System (TESS) for the U.S. Army. Work will be performed in San Diego, Calif., and is expected to be completed by May 2001. Contract funds will not expire at the end of the current fiscal year. The Naval Air Warfare Center Training Systems Division, Orlando, Fla., is the contracting activity.

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Lockheed Martin Corp., Marietta, Ga., is being awarded a $15,000,000 (not-to-exceed) firm-fixed-price contract to provide for the Pre-Engineering and Manufacturing Development Phase of the Reliability and Re-Engining Program supporting the C-5 aircraft. This phase will involve identification of systems, subsystems, and line replaceable units to be upgraded; definition of program requirements; and the conduct of risk reduction activities. Expected contract completion date is Nov. 17, 2000. Solicitation issue date was Nov. 17, 1999.

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NASA's Galileo probe made its closest approach to the Jovian moon Io yesterday, withstanding intense radiation to collect images and other data of the volcanic body from an altitude of only 124 miles.

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FIRST PARACHUTE OPERATIONS from a tilt-rotor aircraft took place in January at Camp Lejeune, N.C., when U.S. Marines jumped from a Bell Boeing MV-22. Marines from the 2nd Air Battalion II MEF were the first personnel to deploy from an Osprey, Boeing said. The Marines made 24 free-fall jumps from 10,000 feet, using engineering, manufacturing and development aircraft No. 10. The aircraft was flown at 120 knots with engine nacelles partly in airplane mode and partly in helicopter mode, Boeing said.

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Aerospace/Defense Stock Box As of closing February 22, 2000 Closing Change UNITED STATES Dow Jones 10304.84 85.32 NASDAQ 4382.12 -29.62 S&P500 1352.17 6.08 AARCorp 23.50 -1.00 Aersonic 10.88 -0.13 AllTech 56.00 0.69 Aviall 7.94 -0.06

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Raytheon TI Systems Inc., McKinney, Texas, is being awarded $25,546,349 as part of a $105,160,878 (total if all options are exercised) firm-fixed-price multi-year contract.

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Northrop Grumman said it has won a $71.9 million U.S. Air Force contract for two more Global Hawk unmanned aerial vehicles. Five of the high-altitude, long-endurance UAVs have been produced and delivered to Edwards AFB, Calif. Air vehicle No. 2, valued at about $45 million, was destroyed when it crashed at China Lake Naval Air Weapons Center, Calif., last March. Another Global Hawk veered off the runway after landing at Edwards when its nose gear collapsed last December, but "little significant damage" was sustained.

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Northrop Grumman Corp., San Diego, Calif., is being awarded a $71,999,635 modification to a cost-plus-award-fee contract, MDA972-95-3-0013, to provide for two prototype Global Hawk unmanned aerial vehicles, associated system modification, and engineering support. Expected contract completion date is March 31, 2002. Solicitation issue date was Sept. 4, 1999. Negotiation completion date was Dec. 13, 1999. Aeronautical Systems Center, Wright-Patterson AFB, Ohio, is the contracting activity.

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DaimlerChrysler Aerospace AG has inked an agreement under which FreeMarkets Inc. (Nasdaq: FMKT) will provide access to an online auction marketplace for purchasing needs. FreeMarkets will work with the unit through its European operations in Brussels.

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Aerojet, Sacramento, Calif., is being awarded a $49,156,651 (Not-to-Exceed) firm-fixed-price contract to provide for up to 75 Thrust Vector Systems to allow the SR-19 rocket motor to be utilized as Stage 1 for the HERA class target rocket booster system. Expected contract completion date is Feb. 18, 2005. Solicitation issue date was Oct. 25, 1999. Negotiation completion date was Feb. 7, 2000. Space and Missile Systems Center, Los Angeles, Calif., is the contracting activity (F04701-00-D-8011).

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The Republic of Singapore Air Force became the second export customer for Northrop Grumman/Lockheed Martin's APG-78 Longbow millimeter wave mast-mounted radar to be installed in its Boeing AH-64D attack helicopters, with an initial $25.9 million contract announced here yesterday at the Asian Aerospace 2000 show. Singapore was the first Asia-Pacific customer for the Apache, with a $620 million foreign military sales contract in March 1999 for eight AH-64Ds, and options on 12 more. Deliveries are slated to begin in 2002.

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Raytheon Missile Systems Co., Tucson, Ariz., is being awarded a $96,800,000 five-year direct vendor delivery, firm-fixed-price contract for performance-based supply support functions, including the acquisition and/or repair of material, shipping, warehousing, and inventory management functions in support of the Phalanx Close-in-Weapon System. This contract combines purchases for the U.S.

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Rohr Inc., Riverside, Calif., is being awarded a $13,539,460 (maximum) firm-fixed-price-supply-requirements contract to provide for up to 75 Right Wing Tips and up to 75 Left Wing Tips applicable to the F-15 aircraft. Funds will be obligated as individual delivery orders are issued. There was one firm solicited and one proposal received. Expected contract completion date is Dec. 31, 2003. Solicitation issue date was Oct. 5, 1999. Negotiation completion date was Dec. 28, 1999.

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The U.S. Air Force could use added funds for a range of programs, including acceleration of a buy of F-16 Block 50s and restoration of a cut in the Airborne Laser (ABL) program, according to documents provided to lawmakers. Responding to requests of the House and Senate defense committees, the Air Force compiled a list of unfunded priorities for which it would use extra money if Congress boosted the president's fiscal year 2001 budget request.

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Smiths Industries yesterday announced plans for its second aerospace acquisition so far this year, the Actuation Systems subsidiary of BAE Systems North America, for $100 million. The cash deal, which expected to close within a month, assuming approval of U.S. regulators, would follow the $175 million acquisition in late January of the aerospace division of Invensys plc.