New operation will access classified information under special security agreement
EADS has formally announced the creation of US defence company EADS North America Defense, in a move intended to make it easier for the European giant to work on US Department of Defense contracts, either directly or with US industry.
The new defence company is a wholly owned subsidiary of EADS North America operating under a special security agreement (SSA) to regulate and ease the management of classified information.
While BAE Systems and Rolls-Royce, which have been established in the US defence market for longer, have SSAs covering all of their North American operations, EADS has had to form a separate entity to implement the required industrial security and export control measures.
The new structure "will facilitate our discussions and dealings with other US corporations", says EADS North America chief executive Ralph Crosby. "This places EADS North America in a position to bid directly for US defence business or partner with another US industry leader as prime or as a subcontractor."
Initially, the defence company includes two existing operations, EADS Test & Services (formerly ARC) and the North American arm of EADS's Defense & Security Systems sector. ARC president James Mulato has been named chief executive of EADS North America Defense.
EADS is stepping up efforts to penetrate the US defence market, announcing on 1 September its teaming with Northrop Grumman to offer the NH90 helicopter for the US Air Force's Personnel Recovery Vehicle requirement to replace the current search-and-rescue helicopter, the Sikorsky HH-60G Pave Hawk. EADS may seek a US prime contractor to offer the C-295 medium transport to the US Army and, if allowed, the KC-330 tanker to the US Air Force.
GRAHAM WARWICK / WASHINGTON DC
Source: Flight International
