By Ann Roosevelt
BAE Systems plans to move ahead on constructing a facility in Oklahoma that will be used to assemble the current and future range of cannon artillery, while planning to close three facilities and cut jobs at an additional three sites in the United Kingdom.
Sen. Jim Inhofe (R-Okla.), a senior member of the Senate Armed Services Committee (SASC), yesterday announced that BAE would continue moving forward on Phase II of the Paladin Integrated Module (PIM) in Elgin, Okla., during a meeting with members of the Lawton/Ft. Sill Chamber of Commerce.
In Farnborough, U.K. yesterday, BAE announced that the company’s Global Combat Systems (GCS) Vehicles and Weapons businesses will close three sites and jobs will be lost.
In Oklahoma, Inhofe said, “I am pleased to announce today that BAE Systems is moving forward on the second phase of PIM in Elgin. Importantly, this announcement means long-term employment for a number of workers in the Ft. Sill/Lawton/Elgin community. BAE will now be constructing a new 150,000 square foot facility located in the Fort Sill Industrial Park. The new facility, expected to be complete in spring of 2010, will provide a flexible facility to assemble and test the PIMs.”
Additionally, BAE will continue its support of the City of Elgin’s efforts to improve the infrastructure at the Industrial Park to include: utilities, site preparation and road work, Inhofe said in his speech.
“In addition to the great economic news for the region, the development of PIM is also good news for our nation’s military, as it will increase the survivability and lethality of our Paladin force–keeping the Paladin a viable weapon system for years to come, Inhofe said.
In a recent Senate committee hearing, Army Vice Chief of Staff Gen. Peter Chiarelli responded to Inhofe’s concern and said the Army was committed to executing the PIM program.
In May 2008, BAE was awarded a $21.8 million contract modification from the Army TACOM Life Cycle Management Command for the design and development of M109A6 Paladin PIM. The PIM uses the existing Paladin main armament and cab structure, replacing hydraulics with electric gun drives that share commonality with the FCS Non-Line-Of-Sight Cannon. Outmoded chassis components are replaced with up-to-date components from the Bradley Combat Systems and integrated into a highly producible, new-design chassis structure to increase sustainability and commonality across the Heavy Brigade Combat Teams.
“The Army needs a thorough and comprehensive modernization program, especially with a fleet of combat vehicles developed and procured between 30 to 60 years ago that are aging rapidly,” Inhofe said. “If we do not modernize, we risk sending our sons and daughters into combat in vehicles that are second-rate and are less survivable and effective in combat. The BAE announcement today on PIM will certainly go a long way in helping to modernize our force.”
Inhofe continues to work for the Army’s major modernization program, the Future Combat Systems (FCS) and its family of manned ground vehicles, including the Non-Line of Sight Cannon (NLOS-C). Defense Secretary Robert Gates has recommended terminating the family of manned ground vehicles, and the new program structure is likely to be unveiled with the president’s budget.
In the United Kingdom, some of the coming job losses at BAE sites are associated with a slowdown in production of the M777 lightweight towed howitzer bought by the United States and Canada.
The moves are also part of the Land & Armament business continuing restructuring (Defense Daily, Apr. 23).
Global Combat Systems Managing Director David Allott said: “We must consolidate a fragmented site infrastructure to reduce fixed overheads, while at the same time transforming our skills mix to increase our U.K. focus on systems integration and win orders internationally. While we clearly regret having to take this step, our forecast U.K. order intake has reduced and we have to match the size of our business appropriately to the projected nature and volume of workload.”
The changes also follow the U.K. announcement that it is postponing the Future Rapid Effects System (FRES)-Utility Vehicle acquisition, and the downturn in work supporting British Army operations in Iraq and Afghanistan.