BOLLINGER TO ACQUIRE HALTER MARINE; HALTER BEGINS NOAA SHIP CONSTRUCTION

By RICHARD R. BURGESS
Managing Editor

Halter begins work on NOAA ship as Bollinger acquires competitor. Also: United Defense makes offer for U.S. Marin Repair; SSGN conversions ready for October start.

Bollinger Shipyards Inc.--a builder of small-to-medium-sized offshore and inland vessels--has signed a $48 million contract with Friede Goldman Halter Inc. to acquire Halter Marine, which has built several similar classes of ships.

If the sale is approved, Bollinger will acquire the assets and operations of Halter Marine, which include seven small shipyards in Mississippi--Halter-Pascagoula, Halter-Moss Point, Moss Point Marine, Halter-Port Bienville, Halter-Central, Gulfport-East, and Halter-Three Rivers--and one in Louisiana, Halter-Lockport.

Bollinger currently operates three new-construction yards and 11 repair and conversion yards. The acquisitions will give Bollinger 22 facilities with 43 drydocks spread from Pascagoula, Miss., to Houston, Texas. Bollinger acquired Halter's repair division in August 2000.

"We are very excited about this pending acquisition as it will expand our capacity and capabilities in new construction, establish our visibility and presence in new foreign and domestic markets, and complement our extensive inventory of designs," said Donald Bollinger, chairman and CEO of Bollinger Inc. "Best of all, we will retain substantially all of Halter's dedicated employees, thereby gaining hundreds of highly talented and skilled designers and shipbuilders whose excellent reputation is known around the world."

The acquisition, pursuant to approval of the U.S. Bankruptcy Court, is expected to be completed in late July or early August 2002.

Bollinger is the builder of the Navy's Cyclone-class coastal patrol ships and the Coast Guard's Barracuda-class patrol boats. Halter is the builder of the Pathfinder-class oceanographic survey ships, the surveillance ship USS Impeccable, the Mark V special operations craft used by SEAL forces, and the Ambassador Mk III patrol craft (for Egypt).
In another development, Halter Marine has begun construction of a state-of-the-art fisheries research vessel for the National Oceanic and Atmospheric Administration (NOAA). The M/V Oscar Dyson is named for a well-known fishing activist in Alaska, and an industry advisor to government, who pioneered the expansion of the commercial fishing of crab, shrimp, and pollock. Dyson also was a founding partner of All Alaskan Seafoods (later sold to Tysons Seafoods), which became the first company controlled by fishermen who owned both the vessels and the canneries.
Halter is scheduled to deliver the 63.6-meter-long Oscar Dyson within 36 months for a price of $38.3 million. If NOAA exercises options to build three more fisheries research vessels of the same class, the contract's value to Halter could increase to more than $165 million.

The Oscar Dyson will be homeported in Kodiak, Alaska, and operated by civilians and officers of the NOAA Commissioned Corps under the auspices of NOAA's Office of Marine and Aviation Operations.

Netherlands, Denmark Join LM JSF Team

Two more European governments have committed to participation in the development of the Joint Strike Fighter (JSF), boosting the long-term viability of the JSF acquisition program, enhancing interoperability between allies, and increasing the potential of additional foreign sales of the future fighter.

The Netherlands signed a memorandum of understanding (MOU) with the U.S. Department of Defense on 5 June to join the JSF System Development and Demonstration (SDD) program as a Level 2 partner. Under the MOU, which was signed the day after the Dutch parliament approved the commitment, The Netherlands agreed to commit $800 million to the development of the JSF, which is being carried out by a team led by Lockheed Martin Aeronautics Company.

The Dutch MOU was signed one week after the government of Denmark joined the JSF SDD program as a Level 3 partner, committing $125 million for the SDD work, and becoming the third country to join the United States in the JSF program.

The United Kingdom--a Level 1 partner with a $2 billion commitment--and Canada--a Level 3 partner with a $150 million commitment--were the first allies to join the United States in developing the JSF. Italy's legislature already has approved Italy joining the program as a Level 2 partner; Norway and Turkey have announced their intentions to join as Level 2 and 3 partners, respectively. Singapore also has expressed interest in the JSF.

Discussing the MOU with the Danish government, E.C. Aldridge Jr., U.S. under secretary of defense for acquisition, technology, and logistics, said that the agreement "serves just about every facet of our two countries' national security imperatives, not just in terms of air dominance, but also interoperability, defense transformation, modernization, cost reduction, acquisition excellence, and the health of our industrial bases."

"We are very excited to bring Denmark into the JSF family, a move that clearly reinforces the international character of this program," said Tom Burbage, executive vice president and general manager of the Lockheed Martin JSF program. "We expect Danish industry to make crucial technical contributions to this aircraft, which is destined to be the backbone of our allied air forces for the next 30 to 40 years."

Commenting on the MOU signed with The Netherlands, Burbage said, "We are proud to have The Netherlands on the JSF team. Dutch industry is highly competitive, extremely capable, and ... already proving its value to JSF."

Several Dutch companies already are under contract to produce subsystems for the JSF.

U.S. defense officials said that the number of international partners joining the program will not affect the JSF's unit cost, which is based on an original estimate of 3,000 aircraft being acquired by the United States and the United Kingdom. "We are anticipating that the international buy will be in the thousands," Aldridge said.

In other developments, Lockheed Martin selected BAE Systems to provide avionics support for the SDD phase as a member of the Autonomic Logistics Integrated Project Team. Lockheed Martin also has selected several small businesses to participate in the JSF's development. Avionics Specialties of Charlottesville, Va., will supply the air data system for the JSF. Progressive Inc. of Arlington, Texas, H.M. Dunn Co. Inc. of Euless, Texas, and Thayer Aerospace of St. Louis, Mo., will provide high-speed and conventional machining for large aluminum and aluminum-lithium components of the JSF. In addition, FiatAvio of Turin, Italy, has joined the team of GE Aircraft Engines, Rolls-Royce, and Philips-ETG in developing and manufacturing the F136 gas turbine engine for the JSF.

United Defense Bids For U.S. Marine Repair

A company well known for its naval and military guns and projectiles has agreed to acquire the nation's leading provider to the Navy of non-nuclear ship repair, modernization, overhaul, and conversion services. United Defense Industries Inc. is offering $316 million for the acquisition of United States Marine Repair (USMR) from affiliates of The Carlyle Group. USMR--headquartered in Norfolk, Va.--operates six shipyards: Norshipco in Norfolk; San Francisco Drydock Inc. in San Francisco, Calif.; and four Southwest Marine shipyards (in Ingleside, Texas; Pearl Harbor, Hawaii; and San Pedro and San Diego, Calif.). USMR's current customers include the U.S. Navy, U.S. Army, U.S. Coast Guard, the Military Sealift Command, and the Maritime Administration, as well as such commercial cruise lines as Holland-America and Royal Caribbean.

"This transaction balances and diversifies United Defense's portfolio, gives us a strategic growth platform, and expands our mission to support the U.S. Navy with superior technology and services," said Thomas W. Rabaut, president and CEO of United Defense. "As the leader in non-nuclear ship repair and modernization, United States Marine Repair brings a track record of excellence, expertise, and on-time delivery. This acquisition is an ideal fit that complements United Defense's current programs for the U.S. Navy.

"Naval ship modernization is a national-defense priority," Rabaut continued. "Adding [USMR] enhances our company's ability to offer full life-cycle support for Navy ship repair, maintenance, and modernization programs, just as we do for many Army programs today."

"The merger with United Defense is a winning combination for our companies, our customers, and our employees," said Alexander J. Krekich, CEO of USMR, who will continue to lead the division. "I expect a smooth and positive integration process because there is no redundancy in the services we provide for our primary customer, the U.S. Navy."

Defense Industry Notes

* DRS Technologies has entered an agreement to acquire the Navy Controls Division of Eaton Corporation for $92 million. Navy Controls supplies high-performance power conversion, instrumentation, and control systems for Navy conventional and nuclear-powered combatant ships. The division's principal facilities are in Milwaukee, Wis., and Danbury, Conn.

* Marine Corps and Army artillery crews have completed an operational assessment of the XM777 Lightweight Howitzer developed by BAE Systems RO Defence. Three prototype howitzers were evaluated in May and June at the Marine Corps Air-Ground Combat Center at Twentynine Palms, Calif. A decision to enter low-rate initial production of the M777 howitzer--programmed to replace the M198 howitzer--is expected in October 2002. The Marine Corps expects to accept first deliveries of 380 M777s in May 2004; the Army expects to receive the first of its 273 units in May 2006. Final assembly of the howitzers will take place in Hattiesburg, Miss.

* Raytheon has been awarded two production contracts totaling $75.4 million for the RIM-116A Rolling Airframe Missile (RAM). The company will manufacture 10 RAM launching systems and support equipment for the German Navy's Korvette-class frigates, and 90 RAM Mk44 Mod 2 guided-missile round packs for U.S. Navy ships. The RAM is currently deployed on more than 60 U.S. and German ships.

* DRS Technologies has been awarded a $12 million Marine Corps Systems Command contract option for the second phase of the M1A1 Abrams Main Battle Tank Firepower Enhancement Program. Exercise of additional contract options would bring the total contract value to approximately $123 million. DRS will build and integrate the Second Generation
Forward-Looking Infrared Thermal Imaging Sight for the gunner's sighting system, and also provide a FarTarget Locator system.

* United Defense has been awarded a $58.4 million contract to produce 27 M88A2 Hercules recovery vehicles for the U.S. Military. The vehicles--six for the Marine Corps and 21 for the Army--will be remanufactured from existing M88A1 versions of the vehicle. The upgrades incorporated in the new versions will increase engine horsepower and improve the vehicle's steering, electrical, and power-assisted braking systems.

* General Dynamics Decision Systems has been awarded a five-year contract to build ground-combat Unit Operations Centers (UOCs) for the Marine Corps. The initial phase of the contract is valued at $13.4 million. The mobile UOCs--designed to be the focal points of decision-making during all phases of ground warfare--will feature integrated intelligence, information, and communications systems to provide enhanced situational awareness for deployed Marine Corps units.

* The Mk54 torpedo--built by Raytheon Naval & Maritime Integrated Systems to counter modern diesel-electric submarines in shallow water--has successfully completed a series of in-water tests conducted by the Navy's Undersea Weapons program office and the Naval Undersea Warfare Center, Raytheon officials said. The tests--conducted on both coasts of the United States and in the Caribbean--were part of the evaluation of Mk54s produced under a limited-rate initial production contract. Initial operational capability of the torpedo is scheduled for 2003.

* L-3 Communications is integrating the Tactical Common Data Link (TCDL) into the Navy's fleet of P-3C Orion maritime patrol aircraft. The TCDL is a high-speed, bidirectional data link used for transmission of digitized sensor data from airborne platforms to surface ships or ground stations. The TCDL will enable P-3 crews to provide commanders with real-time video imagery well beyond line-of-sight over ranges of more than 150 nautical miles.

* Raytheon and the Navy have conducted a live-fire ground test of the Tactical Tomahawk missile at the Naval Surface Warfare Center in Indian Head, Md. The missile--which has been upgraded with such enhancements as launch-platform mission-planning capability, in-flight retargeting, loiter, and battle-damage assessment capability--demonstrated rocket motor separation, deployment of fins, inlet ducts, and wings, and operation of the cruise engine, fins, and guidance systems. *

Northrop Grumman Integrated Systems is continuing development--under a $10 million contract modification--of a UCAV-N for the DARPA/Navy UCAV-N program, the goal of which, company officials said, is to demonstrate the technical feasibility for an unmanned aircraft to "effectively and affordably" conduct sea-based surveillance, strike, and SEAD (suppression-of-enemy-air-defense) missions "within the emerging global command-and-control architecture."

Northrop Grumman was awarded a $2 million contract in 2000 for analysis and preliminary design. In addition, the company itself has funded development of the X-47A Pegasus, a UCAV that will used to demonstrate the aerodynamic qualities needed for autonomous carrier operations. Results of the Pegasus test flights--scheduled for later in this year--will be used in the UCAV-N program, with a larger demonstrator, the X-47B, planned for more advanced tests.

The start and shutdown of the X-47A's Pratt & Whitney JT15D engine was successfully conducted by Northrop Grumman on 18 April. Taxi and flight tests of the X-47A will be conducted at the Naval Air Weapons Station in China Lake, Calif.

The RQ-8A Fire Scout vertical-takeoff unmanned aerial vehicle (VTUAV)--built by Northrop Grumman's Ryan Aeronautical--had completed three test flights at Naval Air Weapons Station China Lake, Calif., as of 10 June. The VTUAV--a derivative of the Schweizer 330 helicopter--has flown preprogrammed autonomous missions that included vertical takeoff, navigation through various waypoints while changing altitude, heading, and airspeed, and return to a predetermined touchdown. The RQ-8A reached altitudes of 4,000 feet and an airspeed of 30 knots during these test flights. The prototype being tested since 19 May is the third of the planned EMD (engineering and manufacturing development) version and is equipped with ARC-210 radios, a vehicle management computer, and a Kearfott navigator. The EMD test program is expected to begin in the first quarter of fiscal year 2003. The Navy plans to use the RQ-8A to evaluate UAV technologies.

The X-45A--built by Boeing as a technology demonstrator for the Unmanned Combat Air Vehicle (UCAV) concept--completed its first test flight on 22 May, the first for an unmanned aircraft system designed from the outset for combat roles. The X-45A flew for 14 minutes at NASA's Dryden Flight Research Center at Edwards Air Force Base, Calif., reaching airspeeds of 195 knots and altitudes of 7,500 feet. Company officials said that the flight characteristics and the command-and-control link were demonstrated successfully. The UCAV is being developed under a $191 million contract by the Boeing Phantom Works and Boeing Military Aircraft and Missile Systems for the Air Force and the Defense Advanced Research Projects Agency (DARPA).

"This flight represents a significant jump in our quest to mature technologies, processes, and system attributes required to integrate UCAVs into the future Air Force," said Col. Michael Leahy, the Defense Department's program manager for the X-45. "UCAVs will effectively and affordably perform extremely hazardous missions, such as the suppression of enemy air defenses, while greatly reducing the risk our aircrews have to face."

The second X-45A will begin flight tests later this year and will join the first X-45A in multi-aircraft flight-test demonstrations next year. UCAVs and manned aircraft are scheduled to operate together in an exercise in fiscal year 2006.

The X-45B, now under development, will be larger and more capable than the X-45A and, company officials said, will "lay the foundation for an initial operational system toward the end of the decade." GE Aircraft Engines has been selected to provide the F404-102D--a variant of the engine that powers the F/A-18 Hornet--to power the X-45B. Boeing also is developing a concept for the DARPA/Navy UCAV-Navy (UCAV-N) program.

The USCGC Hickory, the 12th of 16 Juniper-class seagoing buoy tenders being built for the Coast Guard by Manitowoc Company's Marinette Marine subsidiary, is the third Coast Guard ship to bear that name. The 225-foot cutter "is the latest in a new fleet of technically advanced and highly capable buoy tenders sailing today," said Terry D. Growcock, president and CEO of Manitowoc. "We expect the Hickory and her sister cutters, also built by Marinette Marine, to serve the Coast Guard's needs for decades to come." Rep. Don Young (R-Alaska) was the keynote speaker at the 11 May ceremonies, during which his wife, Lula Young, broke a bottle of champagne in the traditional manner. Then-Coast Guard Commandant Adm. James M. Loy led the list of other distinguished guests attending the launching ceremonies. The Hickory and her crew of six officers and 34 enlisted personnel, serving under the command of Lt. Cdr. Charles Cashin, will be stationed in Homer, Alaska. Her principal missions will be to service navigation aids and carry out search-and-rescue, law-enforcement, pollution-response, and icebreaking operations. The Hickory, shown here being side-launched into the Menominee River, is named for two previous cutters. Old Hickory served from 1852 through 1924 from Shovelful Shoal, Mass. The second Hickory served from 1933 until 1967 in the 3rd Lighthouse District in Staten Island, N.Y.