Hello, Guest!

Weekly Roundup May 9 – May 13 2016: Frank Kendall Halts M&A Authority Push & more


May 9 – May 13 2016

A Note From Our President & Founder Jim Garrettson

Spring-2016-Cybersecurity-Summit
Naval-Operations

The Pentagon’s top product and services buyer made it official this week that the would no longer advocate for greater authority to regulate GovCon merger-and-acquisition activities that involve the large primes.

Frank Kendall told an audience at a Center for Strategic and International Studies event Tuesday the Defense Department discovered it has more power than previously thought over M&A, according to a Defense News report.

As previously described in this space, Kendall’s office started a push in the fall for more regulatory oversight with regards to consolidation among the largest prime government contractors with a particular focus on those in the defense arena.

Then in April, the Justice Department and Federal Trade Commission released a public letter that sought to reiterate their authority over M&A but also acknowledged their reliance on DoD for direction due to the defense industry’s “particular aspects” such as high barriers to entry that make the sector different from others in the commercial world.

The composition of GovCon’s largest platform and product makers appears likely to remain as is and not go through another “Last Supper” consolidation wave that occurred in the mid-1990s.

On the flipside, consolidation among the sectors’ services-oriented companies has been well-documented over the past two years in light of flat or shrinking budgets plus changing nature of contracts to more price-conscious methods and shared vehicles with multiple awardees.

In case you missed it Sunday morning, GovCon Wire’s lead reporter Ross Wilkers spoke to WMAL radio’s “National Defense Week” program hosted by Francis ROse for a segment to discuss the M&A landscape and first quarter earnings season for defense giants.

Click here to listen to the full 8-minute conversation.

THE WEEK’S TOP 10 GOVCON STORIES

Reports: Senate Committee’s FY 2017 Defense Bill Seeks to Split Up AT&L Responsibilities
DoD would have an undersecretary for research and engineering and undersecretary for management and support under the proposal.
DoD to Establish New Defense Innovation Outpost in Boston
Technology industry executive and former Air Force reserve pilot Raj Shah will lead DoD’s Defense Innovation Unit Experimental organization.
Vectrus Boosts Full-Year Guidance on 1Q Earnings, Revenue Beats
A $329 million contract extension received in March for Kuwait-based security services helped pad the Exelis spinoff’s first quarter results.
Former GSA Head Dan Tangherlini to Lead SeamlessDocs’ Washington Operations
Tangherlini will oversee the startup company’s federal business and lead efforts to offer agencies a cloud-based document platform.
Brad Clevenger: SolAero Aims to Complement Space Tech Portfolio with Vanguard Buy
Veritas Capital-owned SolAero makes solar panel and cell products for satellite and spacecraft equipment manufacturers.
Dave Wajsgras: Raytheon’s New Texas Campus to House Data Processing Functions
Raytheon wants to hire at least 2, 000 people for the Richardson-based hub and currently has 27, 000 employees in Texas.
Angela Messer: Booz Allen Cyber Practice Contains ‘Tribes’ of Professionals
Messer, an EVP at the consulting firm, overviewed the different groups within the practice and their various areas of expertise.
Air Force Seeks Industry Help to Build, Implement Contract Writing System
Such a system would be based on Appian’s business process management platform.
Lawmakers Introduce Bill to Limit LPTA Use in Defense Acquisitions
Two senators and another pair of House members have proposed bills in their respective chambers to scale back some LPTA-based contracting processes.
Marcel Lettre Calls for Integration Among Intell Agencies, Innovation With Industry
DoD’s top intelligence official gives a timeline for the ICITE project’s roll-out and how military agencies will participate in the initiative.

Video of the Day

Related Articles