Paramax assesses market terrain

Electronic News, Jan 25, 1993 by Jack Robertson

WASHINGTON--Paramax Systems "is eager to bid" any expected new FAA air traffic control competition, but will likely pass up any new avionic computer bids for the projected Navy AFX aircraft, Al Zettlemoyer, new Paramax president, said last week. The strategy capsulizes the defense firm's changed thrust: phasing down on airborne computers while aiming at ATC business lost four years ago to IBM in the FAA's now-troubled Advanced Automation System (AAS).

Mr. Zettlemoyer also said Paramax (formerly Unisys Defense Systems) moved away from its traditional role of "building computer boxes" for the standard Navy tactical shipboard computers to systems software and hardware integration for Navy processors. "There is little value-add now in simply building boxes," the Paramax executive said. "While Paramax continues to build the standard AN/UYK-43 and 44 computers, the systems are now open architecture using a VME bus. We can now integrate new shipboard client-server networks for distributive processing, while retaining the vast base of older installed software."

The ATC business is opening with anticipated new FAA bids for updated computerized air terminal and Tracon control systems; the FAA is expected to split off the airport ATC portion from IBM's long-delayed AAS--originally slated to be a single system (EN, Dec. 23, 1993).

Paramax, the incumbent for the present ARTS-2 and 3 airport ATC systems, "will face strong competition in any upcoming FAA," Mr. Zettlemoyer said. Paramax was a partner on the Hughes Aircraft team that lost the AAS contract to IBM and now looks for a chance to recapture the air terminal portion.

The strategy shift, however, finds Paramax "turning away from airborne computers" and likely to shun any avionic processor bids for the projected Navy AFX plane. It lost the central mission computer bid for the Air Force F-22 when Lockheed and its computer supplier, Hughes Aircraft, won that competition. Paramax supplies central computers for the B-2 stealth bomber, but that plane's production will end after 20 aircraft are built.

Paramax also is parlaying its role as P-3C airborne computer vendor after the Navy canceled Boeing's P-3C successor. It is teamed with Lockheed to supply computers for an airborne early warning version of the P-3 or Lockheed's C-130 transport.

Paramax will press its computer integration role through re-engineering of software programs. Despite losing to rival GTE on the ISYSCON battlefield bid in its first major attempt to crack the Army integration market, Paramax is vying for two other Army integration projects--All Sources Analysis System and Maneuver Control System--against GTE. "We lost ISYSCON to a better bid by GTE. But we now understand where we went wrong. We're in a strong position for the current Army programs," the Paramax official said. Ironically, Paramax is teamed with GTE on that firm's bid for another Army computer project--Sustaining Base Information System.