CAE wins CAD80m in defence, security contracts

CAE (NYSE:CAE)(TSX:CAE) has won defence contracts in its fourth quarter of fiscal year 2016 valued at more than CAD80 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.

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.

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.

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 US Department of Defense to network the training devices to the classified DTCN.

CAE´s Defence & Security business unit focuses on helping prepare our customers to develop and maintain the highest levels of mission readiness. We are a world-class training systems integrator offering a comprehensive portfolio of training centres, training services and simulation products across the air, land, sea and public safety market segments. We serve our global defence and security customers through regional operations in Canada; the United States/Latin America; Europe/Middle East/Africa; and Asia/Pacific, all of which leverage the full breadth of CAE´s capabilities, technologies and solutions.

CAE is a global leader in delivery of training for the civil aviation, defence and security, and healthcare markets. We design and integrate the industry´s most comprehensive training solutions, anchored by the knowledge and expertise of our 8,000 employees, our world-leading simulation technologies and a track record of service and technology innovation spanning seven decades.