Weekly Roundup Oct 12 – Oct 16 2015: Frank Kendall Expands Thoughts on Defense Sector Consolidation Prospects & more

Jim Garrettson October 16, 2015 News, Weekly Round-up

Weekly Roundup
Oct 12 – Oct 16 2015

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The military’s chief weapons buyer took to the TV airwaves this week to expand further on his message that the defense prime contractor landscape should remain in its current composition and also addressed the research-and-development environment.

Frank Kendall — deputy defense undersecretary for acquisition, technology and logistics — told CNBC reporter Jane Wells in an interview aired Thursday he understood some of the indicators and pressures that could lead some large firms to seek out a potential consolidation move but that may “not necessarily (be) best for the government to have that happen.”

“This trend towards consolidation through mergers.. a tool that would give us a national security basis for intervening would be useful, ” Kendall said to CNBC.

“I’m working with my staff and will be working with Congress to make some recommendations on what to do along those lines.”

Kendall also called on industry to invest more in technological R&D initiatives in light of moves some large contractors have made to repurchase shares as they seek to return capital to stockholders and boost their earnings per share.

“I would personally like to see them… get ready for the next round of defense budget increases which is eventually going to occur, ” he said.

Kendall will keynote the Potomac Officers Club’s “Defense Research and Development” summit Dec. 2 to kick off a half-day event that will also feature’s acting principal deputy assistant secretary for research and engineering.

Click here to register now and save your seat for this timely event.

THIS WEEK’S TOP NEWS STORIES

Northrop Realigns Businesses, Appoints Gloria Flach COO
Starting Jan. 1, the Falls Church, Va.-based defense contractor will operate with three segments as the electronic systems and information systems organizations consolidate into a single hub.

Adm. Michael Rogers: NSA, Cybercom ID Automation as Private Sector Partnership
The NSA and Cybercom lead identifies technologies and programs he says could use business participation in speech to the Potomac Officers Club.

Phyllis Schneck: Gov’t-Industry Trust Key to US Cyber, Physical Infrastructure Defense
DHS’ top cybersecurity executive tells the Potomac Officers Club the government wants to learn more about cyber tools from the private sector.

Tony Scott: Cyber Implementation Plan to Prioritize Workforce Construction
America’s chief information officer calls for a reinvestment in the federal technology workforce in address to the Potomac Officers Club.

L-3 Adds New ISR Tools with ForceX Acquisition; KippsdeSanto’s Karl Schmidt on ISR’s M&A Environment
Nashville-based ForceX makes sensor integration, hardware and video algorithms and other technologies for the U.S. military.

Chico Moline Joins Vectrus as IT, Network Comm VP
Moline, a former VP at Harris, heads to the business that formerly operated as Exelis’ mission systems segment.

Six Firms Win $5B US Air Force Cybersecurity, Info Systems Contract
Awardees will develop and test software and models under the five-year contract, which was awarded as a partial small business set-aside.

NASA Chooses 11 for $400M Langley Center Research Support IDIQ
The space agency doled out the Basic and Applied Aerospace Technology R&D program awards across five tracks of work.

SOCOM Adds 24 Firms to $450M Mission Support Contract
Thirty-two companies will now compete to perform advisory services and business operations support work under the five-year contract.

Booz Allen, Splunk Forge Cyber Alliance; Angie Messer Comments
Both companies seek to help customers in the public sector and commercial arena detect and mitigate computer network threats.

Lockheed to Update Veterans Educational Benefits Processing System; Horace Blackman Comments
“Chapter 33” processes benefits for college undergraduate and graduate-level programs, as well as vocational training initiatives.

Anne Rung, Tom Sharpe Outline Developments in Category Mgmt Implementation
The respective White House procurement office and Federal Acquisition Service leaders update the public on efforts to increase the government’s buying power.

Mark Kirasich Named NASA Orion Program Manager; William Gerstenmaier Comments
Kirasich will oversee the space agency’s work to further develop and test the Lockheed Martin-built spacecraft.

John McHugh: Army to Move Forward with Force Reduction Plans
The Army secretary overviews the service branch’s plans to reduce to a 450, 000-strong active duty force over the next two fiscal years.

Jeh Johnson: Congress Should Legally Authorize ‘Einstein’ Program for Cyber Defense
The homeland security secretary tells lawmakers the intrusion monitoring initiative could have helped with incidents like the OPM breach.