Home / News / Weekly Roundup Jan 4 – Jan 8 2016: Slow Start for GovCon Stocks in 2016 & more

Weekly Roundup Jan 4 – Jan 8 2016: Slow Start for GovCon Stocks in 2016 & more

Jan. 4 – Jan. 8 2016


A Note From Our President & Founder Jim Garrettson

Any thoughts that the start of 2016 would be smooth sailing for U.S. government contracting stocks and financial markets have quickly been cast aside as volatility from 2015’s second half carried into the new year.

The GovCon Index — our composite index of 30 large contractor stocks — has recorded movements of at least a full percentage point up or down in two trading days from four and sat at a loss of 3 percent for the week as of midday Friday.

GovCon stocks appear to be getting swept in with investor fears over a potential economic slowdown in China,  the world’s second largest economy and a central hub of raw material manufacturing.

One GovCon Index stock has held firm against the negativity so far in the form of rocket and ammunition maker Orbital ATK with that company’s shares up nearly 2 percent for the week as of midday Friday.

Dulles, Virginia-based Orbital ATK was the Index’s top gainer in 2015 to the tune of 65 percent — more than double the rate of second-ranked Leidos — as investors appear to bet that the combination of Orbital Sciences and ATK’s aerospace and defense groups will generate returns.

The merger closed in February 2015 and Orbital ATK has exceeded Wall Street’s earnings forecasts in all three quarters since it entered the market as a combined entity.

THE WEEK’S TOP GOVCON STORIES
Gary Slack Joins XLA as President, CEO
Slack served as president and COO at QinetiQ North America from 2012 through 2014, when the company now known as Vencore bought QNA’s services group.
CSRA Hires Leigh Palmer, Christian Marrone for Leadership Roles
Palmer will lead the company’s intelligence group and Marrone was appointed government relations head at the technology services contractor.
Gina Trombley Named Group EVP at Parsons’ Federal Business Unit
Trombley initially joined the LA area-based engineering and construction services firm in 2013 after 14 years at General Electric.
Boeing Wins $855M Contract for USAF T-38C Avionics Integration, Logistics Support
The Air Force currently has its Talon fleet at a lifespan through at least 2020.
Michael Lewis Joins Iron Mountain as Govt Services VP, GM
Lewis brings a three-decade GovCon background to the records management company and previously led CSC’s defense health business.
Lou Von Thaer on His 2016 DynCorp Outlook & The Int’l GovCon Market Picture
The Leidos and General Dynamics veteran previews the contractor’s efforts to add new geographic footprints in this Q&A with ExecutiveBiz.
GSA Opens Bidding on $2.5B Satellite Comms Follow-On GWAC Vehicle
This “CS3” contract is a follow-on to the $2.6 billion “CS2” program jointly awarded by DISA and GSA in 2012.
Bill Ballhaus Joins Blackboard as Chairman, President & CEO
Ballhaus previously led SRA International for the four years prior to its November combination with CSC’s U.S. government business to form CSRA.
Michael Shrader: Healthcare Challenges Present IT Market Opportunities
Carahsoft’s VP of innovative and intelligence solutions also offers his perspective on public-private partnerships in blog post on the health IT landscape.
DoD Proposes Rule for Increased Congress Oversight on Multi-Year Defense Contracts
The defense secretary would be required to alert congressional defense committees within 30 days of an existing multi-year contract’s termination.
Jeff Johnson: FirstNet Sets Path Toward National Broadband Network Development
FirstNet’s vice chairman previews efforts the body will take in 2016 to advance the future network for first responders.
DoD Gives Extension for Vendors to Implement NIST Cloud Security Requirements
Contractors now have until Dec. 31, 2017 to fall within NIST’s rules on how to safeguard information located in company systems.
OPM COO Angela Bailey to Step Down, Move to DHS
Bailey will start her new role Monday as chief human capital officer at the Department of Homeland Security.

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