CAE signs multiple military contracts
Montreal-based CAE solidified its fourth quarter 2013 earnings with a series of contracts valued at approximately $130 million. The deals include a MH-60R avionics maintenance trainer and weapons load trainer for the Royal Australian Navy, a C-130J weapon systems trainer for the United States Air Force (USAF), construction of a training facility for the Kuwait Air Force, and additional training support services as part of the KC-135 aircrew training system program for the USAF.
From the press release:
US Navy/Royal Australian Navy
CAE was awarded a contract to develop an MH-60R avionics maintenance trainer and weapons load trainer (AMT/WLT) for the Royal Australian Navy (RAN) under the United States foreign military sale (FMS) program. CAE USA will be the prime contractor responsible for the design and manufacture of the MH-60R AMT/WLT that will be delivered in 2015 to HMAS Albatross, located near Nowra in New South Wales. CAE is also currently under contract to develop two MH-60R tactical operational flight trainers (TOFTs) for the RAN.
The MH-60R AMT/WLT will provide transition and readiness training for MH-60R avionics technicians and be used to demonstrate, instruct and provide hands-on experience on maintaining the MH-60R Romeo helicopter. In addition, the training device will incorporate the capability to train students how to load ammunition using imitation missiles and ordnance.
Lockheed Martin/US Air Force
Lockheed Martin has exercised a contract option for CAE to design and manufacture an additional C-130J weapon systems trainer for the United States Air Force as part of the C-130J Maintenance and Aircrew Training System Phase II program. The simulator will be delivered in 2016 to Little Rock Air Force Base and used by the U.S. Air Force Air Mobility Command for initial qualification, refresher and distributed mission training.
U.S. Army Corps of Engineers/Kuwait Air Force
The U.S. Army Corps of Engineers has awarded CAE USA a foreign military sales contract to construct a training facility for the Kuwait Air Force at Al Mubarak Air Base in Kuwait. The two-bay training facility will house a KC-130J full-mission simulator that CAE is currently under contract to design and manufacture for the Kuwait Air Force.
United States Air Force
The United States Air Force awarded CAE USA a contract, including options, to perform operations and maintenance support for KC-135 Boom Operator Weapon Systems Trainers (BOWST) as part of the KC-135 aircrew training system program. The USAF is acquiring new KC-135 BOWSTs via a small business to provide KC-135 boom operators with increased synthetic training capabilities. CAE USA, prime contractor on the KC-135 ATS program, will incorporate the training devices into the overall KC-135 training program and provide maintenance support for the new training devices. This initial contract for the first year of operations and maintenance is valued at more than $5 million. Annual KC-135 BOWST maintenance support contract options for the remaining seven years of the KC-135 ATS program are valued at approximately $50 million.