CAE (NYSE: CAE; TSX: CAE) today announced that it has won defence contracts in its fourth quarter of fiscal year 2016 valued at more than C$80 million to provide simulation products and training services for global military customers.
Some of the key contracts include the NATO Support and Procurement Agency (NSPA) awarding CAE a contract to perform a major upgrade on the German Navy's Sea King MK41 helicopter simulator; a contract from Public Works and Government Services Canada (PWGSC) to provide the Canadian Coast Guard a Bell 412/429 helicopter simulator; and a contract to perform upgrades on the US Air Force KC-135 tanker aircrew training devices. The contract with the US Air Force was announced to trade media on February 11 with no contract value.
"Global defence customers including armies, air forces and navies are continuing to recognize CAE's experience and expertise as a training systems integrator," said Gene Colabatistto, CAE's Group President, Defence & Security. "The ability to deliver both simulation products and services as part of a comprehensive training solution is well-received around the world."
The NATO Support and Procurement Agency (NSPA) awarded CAE a contract to perform a major upgrade on the German Navy's Sea King MK41 helicopter simulator located at Nordholz Naval Airbase.
Under terms of the contract, the current Sea King instrument flight rules (IFR) training device originally built by CAE in the mid-1970s will be upgraded to a full-mission simulator. CAE will perform a range of updates, including the addition of the latest-generation CAE Medallion-6000 image generator with Common Database (CDB) architecture, enhanced synthetic and tactical environment simulation software, new vibration system, an improved instructor operator station, and a new brief/debrief station. The upgraded Sea King MK King MK41 full-mission simulator will be ready-for-training in 2017.
"For over 40 years, CAE has had a great relationship with the German Navy on the Sea King training program and we are pleased to be selected to continue our partnership with this major upgrade program," said Ian Bell, CAE's Vice President and General Manager, Europe/Middle East/Africa. "The operational requirements placed on the Sea King helicopter as it nears the end of its planned service life are driving the German Navy to increase the use of simulation as part of the training program. This simulator upgrade will enable significantly more simulation-based training for Sea King helicopter aircrews, including ship deck landing and night vision goggle training."
Canadian Coast Guard
As announced in a trade press release today, CAE was awarded a contract from Public Works and Government Services Canada (PWGSC) to provide the Canadian Coast Guard with a CAE 3000 Series helicopter simulator that will feature cockpits for both the Bell 412EPI and Bell 429 helicopters. The CAE 3000 Series helicopter simulator will feature CAE's revolutionary roll-on/roll-off cockpit design, which enables cockpits representing various helicopter types to be used in the full-flight simulator. The Canadian Coast Guard, which is part of Canada's Department of Fisheries and Oceans, will acquire cockpits for both the Bell 412EPI and Bell 429 helicopters, which are used by the Canadian Coast Guard for maritime security and other fisheries activities. The CAE 3000 Series Bell 412/429 helicopter simulator will be delivered in 2018 to Transport Canada's training centre in Ottawa.
US Air Force
As announced in a trade press release on February 11, the US Air Force awarded CAE USA contracts under the KC-135 Aircrew Training System (ATS) program to upgrade a range of KC-135 aircrew training devices so that they can be used on the US Air Force's Distributed Training Center Network (DTCN). In addition, CAE will be responsible for ensuring the training center facilities housing KC-135 aircrew training devices meet the required physical security and cybersecurity requirements established by the U.S. Department of Defense to network the training devices to the classified DTCN.
Date: Feb 25, 2016