BAE Systems beat out Lockheed Martin

[LMT] on South Korea’s program to upgrade the avionics and electronic systems on its F-16 fleet.

BAE Systems said yesterday South Korea will deliver a Letter of Request (LOR) for the company to be the sole source systems integrator for upgrading more than 130 F-16s, which will be contracted through the Pentagon’s Foreign Military Sales program. The company said in a statement its upgrade solution includes the Commercial Fire Control computer, which it says has the highest throughput and most supportable mission computer in any F-16.

Lockheed Martin spokeswoman Laura Siebert confirmed yesterday the company bid for the South Korean F-16 avionics upgrade.

BAE Integrated Aviation Solutions Vice President Floyd McConnell said yesterday during a conference call the company expects the Letter of Acceptance (LOA) to be signed within three to six months, and once the two parties are under contract, initial upgrade deliveries will begin within three years. McConnell said South Korea has not set a date for initial operational capability (IOC) yet.

McConnell also said once the two parties start the program, BAE will deliver prototypes in “about two to three years.”

BAE estimates the F-16 market comprises 3,000 jets globally with an estimated value of more than $3 billion in potential avionics upgrades.

“We’re ready and we’re qualified to compete in this opportunity-rich market space,” BAE Support Solutions President Dave Herr said Monday.

McConnell said F-16 avionics work is not new to BAE, saying the company provides approximately 40 percent of the mission equipment in F-16s worldwide. He added BAE’s’ F-16 experience dates back to the 1970s aircraft and has included flight control systems and ground support.

The South Korea avionics upgrade is just one program involving F-16 electronics. Both Raytheon [RTN] and Northrop Grumman [NOC] said they will bid on the Air Force’s program to upgrade its F-16 fleet with at least 300 Active Electronically-Scanned Array (AESA) radars. Raytheon is offering its Raytheon Advanced Combat Radar (RACR) while Northrop Grumman is bidding its Scalable Agile Beam Radar (SABR).

Lockheed Martin develops F-16s.