DeWITT — A newly awarded U.S. Air Force (USAF) contract should add to the workforce of one suburban Syracuse defense contractor while another plans changes to its local facilities, but says its operations won’t be affected.

The sensor systems business unit of Saab Defense and Security USA, LLC of DeWitt,  will serve as the main sub-contractor on a radar contract the USAF has awarded to Waltham, Mass.–based Raytheon Co. (NYSE: RTN). 

Saab in 2013 spun off its radar and sensor business  and integrated it as a new business unit into Saab’s newly established defense company, Saab Defense and Security USA, according to an email message from John Belanger, vice president of communications for Saab North America, Inc. Saab Sensis is a wholly owned subsidiary of Saab AB, a Swedish defense and security company.

U.S. Senator Charles Schumer (D–N.Y.) announced the contract award in a news release distributed Oct. 6.

The senator expects the contract to create about 100 local jobs in Onondaga County and support the 400 workers already employed at Saab in DeWitt, which are split between the Saab Sensis air-traffic management division on Collamer Crossing Parkway and Saab Defense and Security on Enterprise Parkway.

Under the contract, Saab Defense will work with Raytheon to produce the next generation, three-dimensional [expeditionary] long-range radars (3DELRR) for U.S. troops overseas, according to Schumer’s office.

Lockheed Martin
Lockheed Martin Corp. (NYSE: LMT), which has a plant on Electronics Parkway in Salina employing 1,600 people, also bid on the radar contract but was beaten by Raytheon.

Lockheed issued a statement on Oct. 8, saying no changes are planned in its local operations because of the contract loss, but also laid out a plan to consolidate local facilities.

“There are no plans to change our operations as a result of the recent [radar] announcement. Consistent with the company’s vision, we will continue to make our space utilization here in Syracuse more efficient. We are currently making capital investments over the next year to consolidate our Court Street operations into our existing Electronics Park footprint. This current project is expected to be completed by the end of 2015,” Lockheed said in the statement.

About the radar contract
The first phase of this contract is worth more than $19.5 million. The USAF has authorized spending of up to $71.8 million over the next 4 years on this contract, Schumer’s office said.

The pact could be worth $1.3 billion over the course of 10 years.

The USAF contract calls for the firms to develop and manufacture 35 of these radar systems for deployment around the world.

As a result of this contract, Saab Defense and Raytheon’s 3DELRR system will now serve as the principal ground-based, long-range radar system of the USAF, Schumer’s office said. 

“This radar will be a tremendous asset for our armed forces and will help create over 100 good-paying jobs here in Syracuse. Federal contracts like this are incredibly important to the entire Syracuse economy…” Schumer said.

The USAF will use these radar sensors for detecting, identifying, tracking, and reporting aircraft and missiles.

The system will replace the USAF’s current AN/TPS-75 air-surveillance radar system, as the 3DELRR will have the capability to extend air surveillance and better detect airborne threats.

These “major” improvements will provide early warnings for the USAF to allow it to “better prepare” for threats from other aircraft and ballistic missiles, according to Schumer’s office. 

“The award of the 3DELRR program to the Raytheon Company is great news for Syracuse and for Saab Defense and Security USA LLC,” Erik Smith, general manager of sensor systems at Saab Defense and Security USA, said in a news release that the office of U.S. Representative Daniel Maffei (D–DeWitt) released on Oct. 6. “Saab is a key partner to Raytheon for this critical U.S. Air Force program,” he said.

Smith credited Maffei’s support of the firms’ pursuit of the USAF contract, according to the Maffei news release.                

Contact Reinhardt at ereinhardt@cnybj.com