Boeing-SAIC Add Key Subcontractors to Army's Future Combat Systems Program.

Business Editors & Aerospace/Defense Writers

SEAL BEACH, Calif.--(BUSINESS WIRE)--June 18, 2002

Making good on its initial promise that they would bring the "best of industry" to the Future Combat Systems (FCS) program, The Boeing Co. (NYSE:BA) -- Science Applications International Corp. (SAIC) team today announced study contract awards to eight major defense companies.

FCS, a key transformation program for the U.S. Army, is a networked system of improved communications links and lighter, more mobile armored vehicles designed to enable a more mobile and more lethal future fighting force. Boeing and SAIC are teamed on the initiative, which has a potential value of $5 billion.

The Army and the Defense Advanced Research Projects Agency (DARPA), working in partnership with the Boeing-SAIC FCS lead systems integrator (LSI) team, awarded contracts to: BAE Systems; General Dynamics; Honeywell, Lockheed Martin; Northrop-Grumman; Raytheon Co.; GM Defense; and UDLP.

"Some of the questions that we most frequently get asked are things like, 'Who's going to build the weapons system?' or 'Who's building the new vehicle platform?'," Jerry McElwee, Boeing vice president and FCS LSI program manager said from his office in Anaheim, Calif. "But that's the old paradigm where companies had ownership of bits and pieces of a major program.

"FCS is breaking that paradigm," he said. "We went out looking for the best technologies and capabilities available -- and that's what we got. This program is truly a unique partnership, a new way of looking at how to put a program like this together."

"These companies bring a diversity of technologies to many areas of the FCS program," Col. Bill Johnson, DARPA program manager said. "I think we've put together a very strong team; the right team for this critical program."

"In addition to the companies that have just been added, there are an additional 55 companies on contract for work ranging from C4ISR to robotics to armored vehicles. We truly have the best of industry," Johnson said.

BAE Systems will focus on communications technology and vehicle integration. General Dynamics was awarded contracts in the computer multifunction and vehicle integration areas. Honeywell will provide information management and vehicle integration technologies. Lockheed Martin will focus on command, control, communications, computers, intelligence, surveillance and reconnaissance (known as C4ISR) in the areas of knowledge management and fusion.

The contract to Northrop-Grumman covers sensor systems and sensor integration, as well as vehicle survivability. Raytheon Co. will bring modeling and simulation technology and sensor systems expertise to the team. GM Defense and UDLP will both work in vehicle integration.

The Boeing-SAIC team was awarded the FCS LSI role in March of this year. The LSI role was strategically important for the Boeing Space and Communications and Phantom Works organizations, which are jointly managing the program. FCS represents the key step into a network-centric, integrated battlespace market that is part of Boeing's vision for the future.

Boeing Space and Communications (S&C), with headquarters in Seal Beach, is the world's largest space and communications company. A unit of The Boeing Co., S&C provides integrated solutions in missile defense, information and communications, launch services, and human space flight and exploration.

It is a leading provider of space-based communications; the primary systems integrator for U.S. missile defense; a leading provider of intelligence, surveillance and reconnaissance; and NASA's largest contractor. The global enterprise has customers worldwide and manufacturing operations throughout the United States and Australia.

The Phantom Works advanced research and development division serves as the catalyst of innovation for the Boeing enterprise. By working together with all the business units, it provides the innovative, breakthrough technologies they seek to reduce the cycle time and cost while improving the quality and performance of their aerospace products and services.

SAIC is the nation's largest employee-owned research and engineering company, providing information technology, systems integration and eSolutions to commercial and government customers. SAIC engineers and scientists work to solve complex technical problems in national security, homeland defense, energy, the environment, telecommunications, health care and transportation.

With annual revenues of $6.1 billion, SAIC and its subsidiaries, including Telcordia Technologies, have more than 40,000 employees at offices in more than 150 cities worldwide. More information about SAIC can be found on the Internet at www.saic.com.