BAE Systems Awarded Contract to Begin Production of Paladin Integrated Management

  BAE Systems Awarded Contract to Begin Production of Paladin Integrated
  Management

Business Wire

YORK, Pa. -- October 31, 2013

BAE Systems received a contract worth up to $688 million from the U.S. Army to
begin Low-Rate Initial Production (LRIP) of the Paladin Integrated Management
(PIM) program. The PIM is a significant upgrade of the M109A6 Paladin
Self-Propelled Howitzer, restoring space, weight, and power-cooling, while
providing growth potential for emerging technologies.

BAE Systems received a contract worth up to $688 million from the U.S. Army to
begin Low-Rate Initia ...

BAE Systems received a contract worth up to $688 million from the U.S. Army to
begin Low-Rate Initial Production (LRIP) of the Paladin Integrated Management
(PIM) program. (Photo: BAE Systems)

“The award is a significant milestone for both BAE Systems and the U.S. Army,”
said Mark Signorelli, vice president and general manager of Combat Vehicles at
BAE Systems. “The PIM team, the program office, BAE Systems, and our suppliers
have been working cooperatively throughout the engineering, manufacturing, and
development phase of the program to ensure that the Army will field a highly
capable howitzer on time and below budget.”

The initial contract was awarded for the base term, valued at approximately
$195 million. During this period, BAE Systems will produce 18.5 vehicle sets —
19 PIM howitzers and 18 PIM Carrier Ammunition, Tracked vehicles. Through
future options, the Army intends to purchase a total of 66.5 vehicle sets plus
spares, kits and technical documentationfor a total contract value of $688
million.

The PIM design includes a new chassis, engine, transmission, suspension,
steering system, and improved survivability, while the vehicle’s cannon
remains the same as that of the Paladin. These upgrades leverage common
mobility components of the Bradley Fighting Vehicle, reducing life-cycle and
obsolescence costs and enabling the PIM to maneuverer with the Armored Brigade
Combat Team.

The PIM uses a 600 volt on-board power system, leveraging technologies
developed during the Non-Line-of-Sight Cannon (NLOS-C) program. The state-of
the-art "digital backbone" and power generation capability integrates electric
elevation and traverse drives, an electric rammer, and a digital fire control
system. This technology provides significant growth potential for future
payloads as well as accommodating existing battlefield network requirements.

“PIM will be a significant leap forward for the Field Artillery in terms of
tactical mobility and force protection,” said Adam Zarfoss, director of
artillery programs at BAE Systems. “Additionally, by incorporating the latest
technology for power generation and management, and leveraging gun driver and
rammer designs from the NLOS-C program, PIM positions the Army for the longer
term with a platform well suited for growth.”

Work on the contract is expected to begin immediately, with delivery of the
first vehicle in mid-2015. Vehicle production will take place in York,
Pennsylvania and Elgin, Oklahoma.

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Contact:

BAE Systems
Megan Mitchell
Tel: +1 703 907 8229
Mobile: +1 571 329 0349
megan.mitchell@baesystems.com
www.baesystems.com/us