_Aerospace Daily

Staff
Hans Mark, former secretary of the U.S. Air Force in the 1970s and now director-designate of the Pentagon's Defense Research and Engineering operation, has told the Senate Armed Services Committee that he wants to "persuade and guide" the military services to undertake a small number of long-range weapons development programs based on "new technology that might lead to decisive military advantages." Mark, in SASC testimony last week, said it is "critical to maintain and enhance the capability to sustain the long-term development of weapons systems."

Staff
Standard&Poor's, citing production problems and cash flow, said it has lowered its ratings on Boeing Co., Boeing Capital Corp. and McDonnell Douglas Corp., but that all ratings are removed from CreditWatch where they were placed with negative implications on April 9. Ratings on Boeing Co. were lowered to AA from AA+, of Boeing Capital to AA- from AA and of McDonnell Douglas from AA+ to AA.

Staff
Aerospace/Defense Stock Box As of closing June 9, 1998 Closing Change UNITED STATES DowJones 9049.92 -19.68 NASDAQ 1800.76 +12.99 S&P500 1118.41 +2.69 AARCorp 26.875 -.062 AlldSig 43.375 -.125 AllTech 63.125 -.188

Staff
NASA has picked the Space Telescope Science Institute in Baltimore, a unique facility built to conduct the science program of the Hubble Space Telescope, to manage the proposed Next-Generation Space Telescope tentatively set for launch in 2007. The institute, on the Homewood campus of Johns Hopkins University, sets scientific priorities and allocates observer time with the Hubble, and receives data from the orbiting telescope via nearby Goddard Space Flight Center.

Staff
The Senate Appropriations VA, HUD and independent agencies subcommittee, marking up its annual spending bill yesterday, provided $13.6 billion for NASA, an increase of $150 million above the Administration's request. The subcommittee, which sends its mark to the full Appropriations Committee tomorrow, created a new account for the International Space Station (ISS) to allow for better monitoring of spending and cost overruns on the program.

Staff
Aydin Corp., Horsham, Pa., said yesterday that it plans to sell some of its divisions so it can pay an arbitration award to Lockheed Martin Corp. and fully focus on its core telemetry and communications business, which represents about 80% of total sales. Aydin is negotiating the sales of its San Jose, Calif.-based Microwave Components, Displays and Molded Devices Divisions and closing down its Raytor Div., also based in San Jose. The company said it expects to complete the actions by the third quarter of 1998.

Staff
U.S. aerospace and satellite industry associations joined forces yesterday to argue against Senate passage of a House measure that would prohibit the launch of U.S.-built commercial communications satellites on Chinese launch vehicles, warning that to do so could cripple U.S. participation in a marketplace worth $1.7 billion last year and growing.

Staff
A foliage penetrating synthetic aperture radar being developed by the U.S. Air Force for the Global Hawk unmanned aerial vehicle will be flight tested first on an Army RC-12 Guardrail aircraft. The Guardrail, a military version of the Beechcraft Super King Air, was picked as a platform for the FOPEN advanced technology demonstration because the Global Hawk itself is still in development, an industry official said. Test flights are expected to begin next year.

Staff
Hawker Pacific Aerospace, Sun Valley, Calif., signed a five-year, $5 million service agreement for United Parcel Services Co.'s entire 747 fleet. Hawker said it will perform landing gear repair and maintenance services on 16 UPS airplanes at Hawker's facility in the U.K. The company also will perform flap track and flap carriage services, a new product line that came with the acquisition of British Airways' landing gear facility.

Staff
U.S. NAVY SECRETARY JOHN DALTON has submitted his resignation effective later this year. He has served in the post since 1993. No replacement has been named. Dalton's resignation means the White House now has to pick its third new service secretary in a short period of time. Still waiting for Senate confirmation hearings are Louis Caldera, nominated to the Secretary of the Army, and Daryl L. Jones, nominated to be Secretary of the Air Force.

Staff
POWERED LOCAAS industry day has been scheduled by the U.S. Air Force for June 24 at Eglin AFB, Fla. The event is intended to bring industry up to speed on the AF Research Lab's advanced technology development plans for the powered Low Cost Autonomous Attack System.

Staff
SPACE-BASED LASER Readiness Demonstration request for proposal is scheduled for release around July 22, the U.S. Air Force said in a June 8 Commerce Business Daily notice. In addition to determining the feasibility of the SBL concept, the study will look at mission utility beyond ballistic missile defense. The SBLRD acquisition is a two-phase effort. The first began in February with award of concept definition study contracts of $10 million each to Lockheed Martin and TRW.

Staff
Lockheed Martin Federal Systems, Manassas, Va., is being awarded a $6,535,569 firm-fixed-price contract to manufacture 11 Phase II acoustic rapid commercial-off-the-shelf insertion kits. These kits are used on submarines, and provide significant improvement in towed array data processing and display. Work will be performed in Manassas, Va., and is expected to be completed in July 1999. Contract funds will not expire at the end of the current fiscal year. This contract was not competitively procured.

Staff
Aerospace/Defense Stock Box As of closing June 8, 1998 Closing Change UNITED STATES DowJones 9069.60 +31.89 NASDAQ 1787.77 +4.85 S&P500 1115.72 +1.86 AARCorp 26.938 +1.062 AlldSig 43.500 -.062 AllTech 63.312 -.750

Staff
JAYCOR, San Diego, Calif., is being awarded a $1,063,866 increment as part of a $5,151,400 cost-plus-fixed-fee contract for research and demonstration of forward-looking sensors package technology, for a vehicular mounted mine detector (VMMD). Work will be performed in San Diego, Calif. (80%), and Nashua, N.H. (20%), and is expected to be completed by May 31, 2001. Contract funds will not expire at the end of the current fiscal year. There were 24 bids solicited on May 6, 1997, and 24 bids were received. The contracting activity is the U.S.

Staff
DeCrane Aircraft Holdings, El Segundo, Calif., signed an agreement to acquire Avtech Corp., an electronic systems company based in Seattle, for about $83 million in cash.

Staff
Lockheed Martin Corp., Santa Maria, Calif., was awarded on May 29, 1998, a $17,872,379 face value increase to a cost-plus-award-fee-contract to provide for hardware and software modifications to upgrade the real-time tracking capability of the Eastern Range. This effort supports the Range Standardization and Automation program for the Eastern Range. Expected contract completion date is April, 2000. Solicitation issue date was April 8, 1998. Negotiation completion date was May 20, 1998.

Staff
Kent Kresa of Northrop Grumman yesterday characterized his company as clearly independent and focusing on growth. Kresa, chairman, president and chief executive officer, said at the Aviation Week Aerospace Finance '98 Executive Symposium in Arlington, Va., that he wasn't there to talk about Northrop Grumman's stalled merger with Lockheed Martin, but about Northrop Grumman. "The legal teams are off dealing with the issue in court and are having minimal impact on the day- to-day operations," he said.

Staff
The financial status of Energia Ltd., the former Soviet space giant responsible for many major firsts in the Cold War space race, was detailed publicly for the first time in the West yesterday, a move that Managing Director Jeffrey Manber said was made necessary by its increasing reliance on commercial space.

Staff
Senate appropriators are funding two new C-37A aircraft - militarized Gulfstream Vs - to help replace aging C-137 and C-135 aircraft that support the warfighting commanders-in-chief, and to move toward consolidation of all CINC support aircraft. The U.S. Air Force this fiscal year wanted to begin a program to equip seven KC-135Rs with special communications to allow them to be used for CINC support (DAILY, Dec. 1, 1997), but Congress urged cancellation of the effort (DAILY, Dec. 23, 1997).

Staff
GENERAL ATOMICS on Thursday completed the first flight of its Prowler 2 unmanned aerial vehicle. The flight, at GA's El Mirage, Calif., test facility, lasted about 30 minutes, reaching 7,500 feet and 80 knots. The UAV has been developed only with company funding.

Staff
A U.S. Air Force study has found that more attention should be paid to surface-to-air missile upgrades carried out by smaller countries, according to the commander of the service's Air Combat Command. The Electronic Warfare Operational Shortfall Study, chartered by U.S. Air Force Chief of Staff Gen. Michael E. Ryan, has shown that modifications to older SAMs by a variety of countries are "the hardest to keep up with," Gen. Richard Hawley, commander of Air Combat Command told reporters last week in Washington.

Staff
Lockheed Martin Corp., Santa Maria, Calif., was awarded on May 29, 1998, a $30,127,000 face value increase to a cost-plus-fixed-fee-contract to provide for various quantities of non-developmental items, including multiplexers, switch hubs, interface equipment, racks, and test equipment, in support of the Range Standardization and Automation program for the Eastern and Western Ranges. Expected contract completion date is May, 1999. Negotiation completion date was May 25, 1998.

Staff
Veda Inc., Alexandria, Va., is being awarded a $7,000,000 indefinite- delivery/indefinite-quantity with cost-plus-fixed-fee-contract to provide for the Sensor Technologies Integration Laboratory Environments program. This effort will design, develop, test, evaluate, and demonstrate Automatic Target Recognition and Sensor Fusion technology. Expected contract completion date is May, 2003. Solicitation issue date was October 24, 1997. Negotiation completion date was May 18, 1998.

Staff
Rockwell International Corp., Cedar Rapids, Iowa, is being awarded an $8,500,000 face value increase to a firm-fixed-price-contract to provide for engineering services and data to incorporate Receiver Autonomous Integrity Monitoring and Flight Management System enhancements into the Pacer CRAG (Communication, Radar and Global Positioning System) modification program for the KC-135 aircraft. Oklahoma City air Logistics Center, Tinker AFB, Okla., is the contracting activity (F34601-96-C-0001- P00049).