Home / News / Weekly Roundup August 1 – August 5 2016: Leidos Further Details Post-Merger Picture & more

Weekly Roundup August 1 – August 5 2016: Leidos Further Details Post-Merger Picture & more

August 1 – August 5 2016

A Note From Our President & Founder Jim Garrettson

Government contracting’s M&A and financial aspects took center stage again this week and GovCon Wire hit on all the major events as Executive Mosaic’s home of market-moving news for the sector.

On Tuesday, Leidos’ executive team detailed the contractor’s financial and strategic outlook to analysts at the New York Stock Exchange for its annual “Investor Day” that centered around one major topic: the mega-merger with Lockheed Martin’s services segment.

Analysts had plenty of questions for dual 2016 Wash100 inductees CEO Roger Krone and CFO Jim Reagan on Leidos’ three-year strategy and changing market dynamics.

GovCon Wire’s full recap of the Leidos NYSE Investor Day is available here.

Engility was one of the early players in GovCon services consolidation via the acquisition of its Chantilly, Virginia neighbor TASC first announced in October 2014 and closed four months later.

Engility started the week on the front foot with second quarter earnings released Monday that “Beat The Street” and analysts subsequently asked CEO Lynn Dugle and CFO Wayne Rehberger about the contractor’s organic growth-focused strategy.

GovCon Wire covered that conversation with Engility leaders here.

This week also marked a rare entry of an activist investor into the GovCon market as Barry Rosenstein’s Jana Partners hedge fund disclosed a stake in Harris Corp. and reached an agreement with the radio maker on two mutual board appointments.

Jana’s reputation among the investment and general business media communities is to quietly push for changes as opposed to the more high-profile, aggressive likes of Carl Icahn and Bill Ackman.

GovCon Wire has more on that story here that also includes Harris’ one-year outlook.

Next week features two major earnings calls from CSC and its government spinoff CSRA in light of the former’s agreement to merge with HPE’s enterprise services segment that includes a significant public sector piece.

Expect analysts to ask for updates on that deal given CSC’s prior decision to exit the public sector market and CEO Mike Lawrie’s scheduled departure from the CSRA chairman role Monday.

THE WEEK’S OTHER TOP 10 GOVCON STORIES

DHS Awards Potential $1.5B PACTS II Non-IT Services Contract Vehicle
Thirty service-disabled, veteran-owned small businesses will compete for task orders to carry out program management services over up to five years.
Army Taps Bravura for $306M Persistent Surveillance Systems-Tethered Program Support IDIQ
Aberdeen, Maryland-based Bravura will help the Army operate an aerostat-based system used in situational awareness and ISR functions.
Air Force Issues RFP on Launch Support Services for 2019 GPS III Mission
Elon Musk’s SpaceX outfit and the Boeing-Lockheed Martin joint venture United Launch Alliance could bid to launch the GPS III satellite.
Air Force Seeks Proposals for Ground-Based ICBM, Long Range Standoff Weapon Programs
Both initiatives are part of the Air Force’s efforts to acquire a Minuteman missile replacement and a new cruise missile for an updated nuclear triad.
Raytheon Opens Hub Near Future Army Cyber Command HQ; Dave Wajsgras Comments
Army Cyber Command is relocating its headquarters to Fort Gordon nearby Augusta, where Raytheon’s new facility is located.
Horace Blackman: Lockheed to Support VA Health Benefits Enrollment System Modernization
Lockheed’s Systems Made Simple subsidiary — soon to be in Leidos — received the task order under the VA’s flagship T4 technology services vehicle.
CSRA to Provide IT Support to NIH’s National Human Genome Research Institute; Kamal Narang Comments
NHGRI personnel will receive servers, databases, desktops, applications and website support under the three-year contract.
Air Force Adds Full-Rate Production Options to 3D Long-Range Radar Solicitation
A contract to engineer and produce the future Three-Dimensional Expeditionary Long-Range Radar is scheduled for award in January-March 2017.
SRI Gets Air Force Software Devt Contract Under DARPA’s Power Grid Cyber Attack Detection Program
DARPA awards SRI funds under a larger program to develop automated systems for utilities to restore power within one week of a cyber attack.
GSA Releases RFI to Support Federal Payroll Modernization Strategy
Individual gross and net pay calculation are two main focus areas for GSA in this market research effort to support the government’s ePayroll initiative.

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