BAE Systems

BAE Systems (United Kingdom) is involved in the nuclear weapons programmes of France, the UK and the US. It produces key components for Trident II (D5) missiles for the US and UK nuclear arsenals. It also produces US Minuteman III Intercontinental Ballistic Missile (ICBM) systems. BAE Systems is also part of the MBDA joint venture and provides nuclear armed air-to-surface missiles for France.

Company Profile

BAE Systems, based in the UK, operates as a military, security and aerospace company worldwide. The company’s main segments are electronic systems, intelligence & security, maritime, military air & services and support solutions.[1]

In the financial year ending 31 December 2016, BAE Systems reported revenues of £ 17.8 billion (€ 20.8 billion), resulting in an operating income of £ 1.7 billion (€ 2.0 billion) and a net income of £ 913 million (€ 1.1 billion).[2]

Contact information

 

Contact information

Website: Twitter: Facebook:
www.baesystems.com/ @BAESystemsplc www.facebook.com/BAESystemsplc

 

BAE Systems PLC Headquarters
PO Box 87 Aerospace Centre,
Farnborough GU14 6YU
United Kingdom
+44 (0) 1252 373232

Nuclear weapons

BAE Systems provides logistics, systems, and readiness support for the US and UK Navy Trident and US Air Force Minuteman missiles programmes.[3]

Contracts include an award in October 2014 by the Strategic Systems Programs (SSP) of the US Navy with an initial value of US$ 17.3 million (€ 12.5 million) for one year, plus three one-year options bringing the total value to US$ 75.0 million (€ 54.1 million). Under the contract, BAE Systems provides supply support and information technology services for the Trident II (D5) Strategic Weapon System (SWS) Program and the SSGN Attack Weapon System (AWS) Program. Primary functions are the management and integration of SSP’s supply Automated Data Processing (ADP) systems; material support operations; and supply system analysis.[4] In 2016, BAE Systems received a one year modification, with the possibility to extend this to 2021, to: “[…] provide systems engineering and integration services in support of Trident II (D5) strategic weapons system, the SSGN attack weapon system, and nuclear weapon surety.” The contract can have a maximum contract value of US$ 368 million (€ 328 million).[5]

In August 2013, BAE Systems took over from Northrop Grumman as the prime contractor for Minuteman III Intercontinental Ballistic Missile (ICBM) system engineering/technical assistance support, training and development. The contract awarded by the US Air Force is worth more than US$ 535 million (€ 403.3 million) and runs through 2021.[6] The takeover of tasks by BAE from Northrop Grumman was completed in June 2014. Among the 29 key tasks, two critical activities were identified as weapon system effectiveness and force development evaluation, which involves analysing the Air Force’s Minuteman III test launches.[7] Since 2013, BAE Systems was provided with various contract modifications, bringing the value with all options exercised to US$ 770.2 million (€ 704.9 million).[8] In July 2016, BAE Systems was awarded an US$ 51 million (€ 45.9 million) updated contract to “[…] provide systems engineering, technical assistance support, training and development in performing integration, sustaining engineering and program management support functions for the Minuteman III weapon system.”[9] In July 2017, BAE Systems was also awarded a US$ 45.2 million (€ 39.6 million) modification to an existing contract for development work on the Ground Based Strategic Deterrent (GBSD) intercontinental ballistic missile replacement programme, for the LGM-30 Minuteman III ICBM.[10] Also in July 2017, BAE Systems received a US$ 72.6 million (€ 63.6 million) contract modification for integration and technical support for the Air Force’s Minuteman III.[11]

MBDA-Systems, a joint venture between BAE Systems (37.5%), Airbus (37.5%) and Leonardo-Finmeccanica (25%), supplied the medium-range air-to-surface missile ASMPA to the French air force, which has been operational since 2009. It carries an airborne nuclear warhead developed by the CEA.[12] In July 2014, MBDA commenced work on design and development of the mid-life upgrade of the ASMPA, to extend life through 2035. The contract has a value of € 57.3 million.[13] Reportedly, MBDA is also charged with the development of the ASMPA-successor ASN4G, to be operational in 2035.[14]

 

Investors

 

Investors

The following financial institutions made approximately US$ 25,986 million available to this producer between January 2014 and October 2017.

In January 2018, Norges Bank announced it would divest from BAE Systems.

  • Allianz (Germany)
  • Allstate (United States)
  • American Equity (United States)
  • American Financial Group (United States)
  • American International Group (AIG) (United States)
  • American United Mutual Insurance (United States)
  • Ameriprise Financial (United States)
  • ANZ (Australia)
  • Artisan Partners (United States)
  • Aviva (United Kingdom)
  • AXA (France)
  • Bank of America (United States)
  • Bank of New York Mellon (United States)
  • Barclays (United Kingdom)
  • BlackRock (United States)
  • BNP Paribas (France)
  • Capital Group (United States)
  • Citigroup (United States)
  • CNO Financial Group (United States)
  • Commerzbank (Germany)
  • Commonwealth Bank of Australia (Australia)
  • Crédit Agricole (France)
  • Crédit Mutuel CIC Group (France)
  • Deutsche Bank (Germany)
  • Fidelity International (Bermuda)

  • Fidelity Investments (United States)
  • Franklin Resources (United States)
  • Goldman Sachs (United States)
  • Hartford Financial Services (United States)
  • Invesco (United Kingdom)
  • JPMorgan Chase (United States)
  • Jupiter Fund Management (United Kingdom)
  • Legal & General (United Kingdom)
  • Legg Mason (United States)
  • Liberty Mutual Insurance (United States)
  • Lloyds Banking Group (United Kingdom)
  • Loews Corporation (United States)
  • LSV Asset Management (United States)
  • Macquarie Group (Australia)
  • Manulife Financial (Canada)
  • Marathon Asset Management (United Kingdom)
  • MassMutual Financial (United States)
  • MetLife (United States)
  • Mitsubishi UFJ Financial (Japan)
  • Mizuho Financial (Japan)
  • Morgan Stanley (United States)
  • National Bank of Abu Dhabi (United Arab Emirates)
  • New York Life Insurance (United States)
  • Norges Bank (Norway)
  • Northwestern Mutual Life Insurance (United States)

  • Pacific Asset Management (United States)
  • Principal Financial Group (United States)
  • Prudential (UK) (United Kingdom)
  • Prudential Financial (US) (United States)
  • Royal Bank of Canada (Canada)
  • Royal Bank of Scotland (United Kingdom)
  • Schroders (United Kingdom)
  • Silchester International Investors (United Kingdom)
  • Skandinaviska Enskilda Banken (Sweden)
  • Société Générale (France)
  • Standard Life Aberdeen (United Kingdom)
  • State Farm (United States)
  • State Street (United States)
  • Sumitomo Mitsui Financial (Japan)
  • Sun Life Financial (Canada)
  • Thrivent Financial (United States)
  • TIAA (United States)
  • Toronto-Dominion Bank (Canada)
  • UBS (Switzerland)
  • Vanguard (United States)
  • Waddell & Reed Financial (United States)
  • Wellington Management (United States)
  • Wells Fargo (United States)
  • White Mountains Insurance (Bermuda)
  • William Blair & Company (United States)

 

Notes

Notes

 

[1]     BAE Systems, “Our businesses”, Website BAE Systems (www.baesystems.com/en/our-company/our-businesses), viewed July 2017.

[2]     BAE Systems, “Annual Report 2016”, BAE Systems, February 2017.

[3]     BAE Systems, “Are BAE Systems involved in the construction or sale of nuclear weapons?”, Website BAE Systems (www.baesystems.com/en/our-company/corporate-responsibility/working-responsibly/faqs/how-are-bae-systems-involved-in-the-construction-/-sale-of-nuclear-weapons-), viewed July 2017June 2016.

[4]     Federal Business Opportunities, “Logistics Support Services for TRIDENT II (D5) Strategic Weapon System (SWS) Program and the SSGN Attack Weapon System (AWS) Program”, Website FedBizOpps, 2 October 2014 (www.fbo.gov/index?s=opportunity&mode=form&tab=core&id=885301d624752ccfcd6c1b2dec834efa);
Strategic Systems Programs, “Justification and Approval for Use of other than full and open competition – J&A NOsp 15,682”, Strategic Systems Programs, October 2014;
U.S. Department of Defense, “Daily contract list – Contract N00030-15-C-0007”, Website U.S. Department of Defense, 1 October 2014 (www.defense.gov/News/Contracts/Contract-View/Article/606698); BAE Systems, “Annual Report 2014”, BAE Systems, February 2015.

[5]     U.S. Department of Defense, “Contracts – Navy Release No: CR-190-16”, Website U.S. Department of Defense, 3 October 2016 (www.defense.gov/News/Contracts/Contract-View/Article/962429/), viewed in July 2017;

GovConWire, “BAE, Boeing Receive Trident II Missile Support Contracts From Navy”, Website GovConWire, 4 October 2016 (www.govconwire.com/2016/10/bae-boeing-land-trident-ii-missile-support-contracts-with-navy/), viewed in July 2017.

[6]     BAE Systems, “Bae Systems wins $534 Million contract to sustain U.S. Intercontinental Ballistic Missiles”, News release BAE Systems, 1 August 2013 (www.baesystems.com/article/BAES_160103/bae-systems-wins-534-million-contract-to-sustain-us-intercontinental-ballistic-missiles?_afrLoop=2119622011837000&_afrWindowMode=0&_afrWindowId=null#!%40%40%3F_afrWindowId%3Dnull%26_afrLoop%3D2119622011837000%26_afrWindowMode%3D0%26_adf.ctrl-state%3Dxdb9fxlgy_81).

[7]     Inside the Pentagon, “BAE Weeks Away From Fully Assuming Lead Role In ICBM Sustainment”, Inside the Pentagon, Vol.30(18), 1 May 2014.

[8]     GovTribe, “Federal Contracts FA821413C0001 USAF BAE Systems Technology Solutions & Services Inc.”, Website GovTribe (govtribe.com/contract/award/fa821413c0001), viewed in June 2016.

[9]     U.S. Department of Defense, “Contracts – Army Release No: CR-145-16”, Website U.S. Department of Defense, 29 July 2016 (www.defense.gov/News/Contracts/Contract-View/Article/880816/), viewed in July 2017.

[10]    U.S. Department of Defense, “Contracts Army Press Operations Release No: CR-139-17”, Website U.S. Department of Defense, 20 July 2017 (www.defense.gov/News/Contracts/Contract-View/Article/1253537/), viewed in July 2017;

UPI, “BAE awarded $45.2 million ICBM contract”, Website UPI, 21 July 2017 (www.upi.com/Defense-News/2017/07/21/BAE-awarded-452-million-ICBM-contract/4991500647400/), viewed in August 2017.

[11]    U.S. Department of Defense, “Contracts Release No: CR-143-17”, Website U.S. Department of Defense, 26 July 2017 (www.defense.gov/News/Contracts/Contract-View/Article/1258952/), viewed in August 2017;

UPI, “Minuteman III ICBM support contract awarded to BAE”, Website UPI, 26 July 2017 (www.upi.com/Defense-News/2017/07/27/Minuteman-III-ICBM-support-contract-awarded-to-BAE/3651501161165/) , viewed in August 2017.

[12]    Direction Générale de Ármement, “Le missile ASMPA”, Website Direction Générale de Ármement, 24 March 2016 (www.defense.gouv.fr/dga/equipement/dissuasion/le-missile-asmpa).

[13]    Ministère de Finances et des Comptes Publics, “Extrait du Bleu Budgétaire de la Mission: Défense”, Ministère de Finances et des Comptes Publics, 7 October 2014 (www.performance-publique.budget.gouv.fr/sites/performance_publique/files/farandole/ressources/2015/pap/pdf/DBGPGMPGM146.pdf); Tran, P., “France Studies Nuclear Missile Replacement”, Website DefenseNews, 29 November 2014 (www.defensenews.com/story/defense/international/europe/2014/11/29/france-studies-nuclear-missile-replacement/19668735/).

[14]      Tran, P., “Onera explores Mach-8 Missile Engine Technology”, Website DefenseNews, 17 October 2015 (www.defensenews.com/story/defense/air-space/air-force/2015/10/17/onera-explores-mach-8-missile-engine-technology/73928488/);
Merchet, J.D., “MBDA, une entreprise pionnière de l’Europe de défense”, Website L’Opinion, 23 March 2015 (www.lopinion.fr/blog/secret-defense/mbda-entreprise-pionniere-l-europe-defense-22548); Hollande, F., “Discours sur la dissuasion nucléaire – Déplacement auprès des forces aériennes stratégiques. Istres (13)”, Présidence de la Republique Française, 19 February 2015 (www.elysee.fr/declarations/article/discours-sur-la-dissuasion-nucleaire-deplacement-aupres-des-forces-aeriennes-strategiques-istres-3/);
Warwick, G. & L. Dickerson, “Arming New Platforms Will Push Up Value Of Missiles Market”, Website Aviation Week, 5 January 2015 (aviationweek.com/defense/arming-new-platforms-will-push-value-missiles-market).

 

This page was last updated on 22 January 2018.

 

Top 20 Producers

Looking for information on other nuclear weapon associated companies? Check here.

In some nuclear-armed states – in particular the United States, the United Kingdom and France – private companies are hired by governments to carry out work on maintaining and modernising nuclear arsenals.

This report looks at the top 20 companies that are providing the necessary components to develop, test, maintain and modernise nuclear weapons.The contracts these companies have with nuclear armed countries are for materials and services to keep nuclear weapons in their arsenals. The companies described are substantially involved in the nuclear weapons programmes of the United States, the United Kingdom, France, or India and are themselves based in France, India, the Netherlands, the United Kingdom and the United States. More information on other companies involved in nuclear arsenals, not listed in the top 20, can be found here.

In other nuclear-armed countries –Russia, China, Pakistan and North Korea – the maintenance and modernization of nuclear forces is carried out primarily or exclusively by government agencies.

Methodology

The nuclear weapon producers identified were selected on the basis of a predetermined set of criteria.
– Information on investments is publicly available.
– The company is directly involved in the development, testing, production, maintenance or trade of nuclear weapons related technology, parts, products or services.
– The company’s involvement is related to warheads, or to delivery systems such as missiles, that are specifically developed for nuclear tasks. This includes technology that is designed for ‘dual use’ (military and civilian) but excludes technology that is not designed for, but can be used in nuclear warfare. It does not include delivery platforms such as bombers and submarines.

State owned or controlled nuclear industries are outside the scope of this research, as are companies not publicly listed. Our research uncovered a number of Universities involved in nuclear weapons programmes, but these are also outside the scope of the report.

The list of nuclear weapon producers investigated was compiled through a wide variety of sources, including financial institution exclusion lists, civil society reports, media reports, etc. Additional details on the contracts and components is on the website.
We welcome information at any time about possible nuclear weapon producing companies to investigate.