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BAE SYSTEMS FIST Solution Would Create Long-Term Employment

10 Feb 2003

BAE Systems today revealed the long-term employment benefits to Britain that will accrue from its down-selection to fulfil the Assessment and Demonstration & Manufacturing phases of the UK Ministry of Defence's Future Integrated Soldier Technology (FIST) programme.

During the Assessment Phase, between 2003 and 2006, some 60 highly skilled engineers and support staff will be employed. Half will be sustained within BAE Systems and the balance in UK-based Small-and Medium-sized Enterprises (SMEs). Systems engineering and hardware assessment activities will be undertaken at BAE Systems' Leicester and Christchurch sites. Ninety per cent of the intellectual property rights generated during this phase will be UK-hosted.

The Demonstration & Manufacturing Phase, beginning in 2007, will raise employment levels significantly. Several hundred British jobs will be created within BAE Systems and in SMEs across the UK. Seventy-five per cent of the technology content and intellectual property rights are expected to be domestically sourced, and all FIST technologies will be UK controlled. BAE Systems has included Thales UK in its preparations for the Assessment Phase and would expect Thales to become a major sub-contractor.

Export opportunities of FIST technology from the UK are expected to sustain a further 200 posts in the longer term.

Phill Blundell, Managing Director of the company's C4ISR Group, comments "FIST will create new levels of capability for the British front-line soldier. We must combine technology from across the supplier base with the skills of British workers to optimise the solution. The FIST Prime Contractor will be the long term partner to the British Army in developing the doctrine and tactics to make the best use of the new generation of equipment. We will generate a market-leading system that will be in demand overseas - supplying UK-designed equipment from the UK will ensure that our systems integration, development and manufacturing skills are retained for the future."

Background note:

The BAE Systems-led team has already created a truly open and value-adding relationship with an extensive base of suppliers of advanced technologies. A guiding focus has been the five NATO domains of lethality, C4I, mobility, survivability and sustainability. Co-ordination will take place within BAE Systems engineering processes and domain understanding in partnership with the user military community, the Defence Procurement Agency and their specialist advisers. The team will build upon the 1999 FIST Technology Demonstration trials, to which BAE Systems contributed significantly.

The initial procurement phase of the FIST programme is estimated to cost about 500 million, with a through-life support value of up to 1.5 billion in the years up to 2020. An initial operating capability is to be delivered by 2009. The Ministry of Defence has plans to continue the development of the FIST system through major incremental steps in 2012 and 2015. This strategy could ensure the UK's position as one of the leading suppliers of soldier systems and technology for the future.

About BAE SYSTEMS:

BAE Systems is a systems company, innovating for a safer world. BAE Systems employs nearly 100,000 people including Joint Ventures, and has annual sales of around 13 billion. The company offers a global capability in air, sea, land and space with a world-class prime contracting ability supported by a range of key skills. BAE Systems designs, manufactures and supports military aircraft, surface ships, submarines, radar, avionics, communications, electronics, guided weapon systems and a range of other defence products. BAE Systems is dedicated to making the intelligent connections needed to deliver innovative solutions.

BAE Systems C4ISR is a global centre of excellence supplying innovative, network enhanced solutions focused on military capability. The Group integrates advanced civil and military technologies into robust, single-service and joint information management environments. It optimises the operational effectiveness of command & control and platforms within the digitized battlespace, providing flexible architectures to support fast decision-making.